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 enter the industry until all economic profits are eliminated.
B. firms to enter the industry and profits to increase.
C. firms to exit the industry and profits to increase.
D. nothing to change; it will continue to make a profit.
Answer: A
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In the long run, foreign labor remains cheap when and if
A. it becomes highly efficient and competes successfully internationally. B. countries erect barriers to trade between poor countries. C. productivity increases more rapidly in poor countries than in rich countries. D. it remains inefficient compared to other countries’ labor.
Intermediaries, known as middlemen, specialize in
A. negotiating low prices for buyers. B. reducing transaction costs. C. encouraging consumers to buy goods on credit, rather than with cash. D. negotiating high prices for sellers.
The slope estimator, ?1, has a smaller standard error, other things equal, if
A) there is more variation in the explanatory variable, X. B) there is a large variance of the error term, u. C) the sample size is smaller. D) the intercept, ?0, is small.
The late-1960s era Johnson 10% tax surcharge designed to curb inflation is an example of
A. monetary policy. B. discretionary (and expansionary) fiscal policy. C. discretionary (and contractionary) fiscal policy. D. nondiscretionary fiscal policy.