In the long-run equilibrium in monopolistic competition, price equals marginal cost
Indicate whether the statement is true or false
FALSE
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Based on the figure below. Starting from long-run equilibrium at point C, a tax cut that increases aggregate demand from AD to AD1 will lead to a short-run equilibrium at point ________ and eventually to a long-run equilibrium at point ________, if left to self-correcting tendencies. 
A. D; C B. B; C C. B; A D. D; B
When positive economic profits exist in an industry:
A) the market price of the good produced by the industry is less than the average total cost of the industry. B) resources flow from less productive uses to that particular industry. C) there is an exit of firms from the industry. D) the market price of the good produced by the industry is less than the marginal cost faced by the industry.
Evaluate critically the following statement: The developed countries have all shown a significant increase in the numbers of university-trained workers as incomes have risen; thus the development of a solid university system should be among the
major priorities of developing countries.
__________ are backup or secondary plans to be used in case the first plan does not work out
a. Unilateral b. Directional c. Multilateral d. Contingency