If the firms in a monopolistically competitive industry are suffering short-run losses, which of the following will occur in the long run?
a. Some firms will enter the industry.
b. Customers of firms that leave the industry will switch to remaining firms.
c. Firms that remain in the industry will face reduced demand.
d. Firms will continue to incur losses.
e. There will be no excess capacity.
B
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In the 1980s, the federal government gradually ________ interest-rate ceiling on deposits at commercial banks and thrift institutions, which has ________ the costs of inflation
A) imposed, lowered B) imposed, reduced C) lifted, lowered D) lifted, reduced
Subsidies are payments made by the government of a country to:
a. foreign firms to encourage imports from the country in question. b. foreign firms to boost their exports. c. domestic firms to encourage exports. d. domestic firms to encourage imports. e. domestic consumers to encourage consumption of imported goods.
The interest rates on outstanding credit card balances are generally high because
A) the default rate on credit card loans is high and there are no assets backing these loans. B) the banks "price gouge" consumers in this market. C) there is little competition in this lending market. D) the administrative costs associated with these loans are low.
Refer to the information provided in Figure 13.9 below to answer the question(s) that follow. 
Figure 13.9 Refer to Figure 13.9. The amount of consumer surplus under monopoly is equal to area
A. BEC. B. AFC. C. GAB. D. AFE.