Refer to the information provided in Figure 15.2 below to answer the question(s) that follow. 
Figure 15.2 Refer to Figure 15.2. In this monopolistically competitive industry, in the long run
A. demand for the product will decrease so that profits are decreased.
B. the government will impose price controls to eliminate any economic profits.
C. firms will continue to earn economic profits.
D. firms will enter until all firms earn a normal profit.
Answer: D
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In general, the purpose of markets is to facilitate the exchange of goods and services between buyers and sellers
a. True b. False Indicate whether the statement is true or false
When a $500 check is cleared from Bank A to Bank B, it does not change the money supply, because:
a. Actually, it reduces the money supply. b. Actually, it increases the money supply. c. Because one individual's checking deposit falls and another individual's rises. d. Because funds are transferred from one loan account to another. e. These funds are temporarily "out of circulation" until the ultimate owner of the funds deposits them.
In the 1800s, Europeans purchased stock in American companies that used the funds to build railroads and factories. The Europeans who did this engaged in
a. foreign portfolio investment. b. indirect domestic investment. c. foreign direct investment. d. foreign indirect investment.
A trade deficit refers to a situation where:
A. Government spending (including transfer payments) exceeds tax revenues B. A nation's purchases from other nations are less than its sales to other nations C. Assets are less than liabilities D. Exports are less than imports