Refer to the information provided in Figure 15.3 below to answer the question(s) that follow. 
Figure 15.3 Refer to Figure 15.3. In the long run, this monopolistic competitive firm should expect
A. firms to exit the industry and profits to increase.
B. firms to enter the industry and profits to increase.
C. nothing to change; it will continue to make a profit.
D. firms to enter the industry until all economic profits are eliminated.
Answer: D
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The phrase "reversal of fortunes" refers to the fact that:
A) colonies that were existing in 1500, are now no longer colonies and are independent nations. B) areas that were relatively highly urbanized in 1500, are generally poorer today. C) colonies that were existing in 1500, have all recorded negative growth rate over the last century. D) areas that were relatively less urbanized in 1500, are generally poorer today.
Which of the following is the correct expression for short-run aggregate supply in the new classical view?
A) YP = Y + a(P - ) B) Y = YP + a(P - ) C) YP = Y + a(P + ) D) Y = YP + a(P + )
The Fed prefers to change its interest rate target only rarely because
a. those targets affect productivity in the labor force b. a fluctuating stock and bond market signals a recession c. interest rates are greatly overrated as a measure of economic performance d. it is so difficult to do so e. the changes destabilize the financial markets
If the efficient markets hypothesis is correct, then
a. the number of shares of stock offered for sale exceeds the number of shares of stock that people want to buy. b. the stock market is informationally efficient. c. stock prices never follow a random walk. d. All of the above are correct.