In a perfectly competitive industry, any restrictions that prevent new firms from entering
A) lead to negative profits.
B) guarantee that all existing firms will earn exactly a zero profit.
C) hinder economic efficiency.
D) reduce the average cost of production.
Answer: C
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The following table shows the percentage of income received by quintile. In the graph below, draw a Lorenz curve using the before taxes and transfer data and a Lorenz curve for the after taxes and transfer data. Label the Lorenz curves and each axis of
the graph.
Using the Rule of 72, how long will it take something growing at 4% per year to double?
A. 72 years B. 100 years C. 288 years D. 18 years
Refer to the figure below.________ inflation will eventually move the economy pictured in the diagram from short-run equilibrium at point ________ to long-run equilibrium at point ________. 
A. Rising; A B. Falling; A; C C. Falling; B: C D. Rising; A; C
Which of the following is NOT an objective of long-term financial plans?