In a perfectly competitive market with 1,000 firms, each demanding 50 laborers at a wage rate of $5 per hour, the quantity demanded of labor by the industry producing for this market at this wage is
a. 25,000 workers
b. 50,000 workers
c. 250,000 workers
d. 5,000 workers
e. insufficient information to determine the quantity
B
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Your firm sells club soda in both grocery stores and convenience stores. You have a budget of $550 for store displays, and must decide how to allocate this budget between grocery stores and convenience stores to maximize the total number of sales. The following table shows the total number of units that can be sold in grocery stores and convenience stores, according to the number of displays in each type of store. Displays in grocery stores cost $150 each and displays in convenience stores cost $100 each. 
Given the above information, to maximize the total number of sales, you should choose
A. 3 grocery store displays and 4 convenience store displays. B. 3 grocery store displays and 3 convenience store displays. C. 1 grocery store display and 4 convenience store displays. D. 3 grocery store displays and 2 convenience store displays.
A monopolistically competitive industry is like a purely competitive industry in that:
A. nonprice competition is a feature in both industries. B. firms in both industries face a horizontal demand curve. C. each industry produces a standardized product. D. neither industry has significant barriers to entry.
A major hurricane causes production problems in Gulf Coast region of the United States. This would cause
A. the short-run aggregate supply curve to shift to the left, but there would be no effect on the long-run aggregate supply curve. B. the short-run aggregate supply curve to shift to the left, and the long-run aggregate supply curve would shift to the right. C. both the short-run and the long-run aggregate supply curves to shift to the left, but the long-run aggregate supply curve would shift more than the short-run curve. D. both the short-run and the long-run aggregate supply curves to shift to the right in equal amounts.
The infant industry argument has a normative economic basis because
A. clearly, all industries need to be protected. B. political corruption is the only deciding factor. C. protected industries are selected on a factual basis. D. the government must decide which industries should be protected.