The price in a contestable market is similar to that in a perfectly competitive market because
A) there are barriers to entry.
B) there are no barriers to entry.
C) there are many firms in the market.
D) the firm can earn an economic profit in the long run.
B
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Refer to the scenario above. Which of the following will happen if her husband quits his job to look after their son instead of Sarah?
A) The country's GDP will remain unchanged. B) The country's GDP will increase. C) The country's trade deficit will increase. D) The country's trade surplus will increase. Mike's housekeeper charges $30 for mowing his lawn.
The social security tax is called FICA, which stands for:
a. Federal Investment Corporation of America. b. Federal Income Contributions to Americans. c. Funding from Individuals and Corporations in America. d. Federal Insurance Contributions Act.
Under a gold standard in which France defined one franc to be worth 1/50th of an ounce of gold and the U.S. defined one dollar to be worth 1/10th of an ounce of gold, then
A. one U.S. dollar would exchange for five French francs. B. the French franc is worth only one-tenth as much as the dollar is worth. C. the U.S. dollar is valued at one-fifth of the French franc. D. on French franc would exchange for ten dollars.
Refer to the information provided in Figure 7.8 below to answer the question(s) that follow. 
Figure 7.8Refer to Figure 7.8. The firm's isocost line could shift from CD to CE if the
A. price of labor increased. B. price of labor decreased by 50%. C. firm's total expenditures increased by 50% or the price of capital and labor each decreased by 33%. D. firm's total expenditures increased by 50%.