Which of the following is(are) basic feature(s) of a perfectly competitive industry?
A. Buyers and sellers have perfect information.
B. There is free entry and exit in the market.
C. There are no transaction costs.
D. All of the statements associated with this question are correct.
Answer: D
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Refer to the figure below. If the price of a latte increases from $2.00 to $2.50: 
A. the change in total expenditure, if any, would depend on the supply curve. B. total expenditure would stay the same. C. total expenditure would increase. D. total expenditure would decrease.
Explain what type of unemployment changes with the business cycle and how it changes
What will be an ideal response?
Which of the following statements about the specific factors model is TRUE?
a. When exports of a product rise, the increase in export revenue is divided equally among mobile and specific factors of production. b. When imports rise, revenues of firms that compete with imports fall. The decrease in revenue is divided equally among the mobile and specific factors of production. c. When exports of a product rise, factors specific to exports gain less and mobile factors gain more; when imports rise, factors specific to firms competing with imports gain more and mobile factors gain less. d. When exports of a product rise, factors specific to exports gain more than mobile factors; when imports rise, factors specific to import competing industries lose more than mobile factors.
An employee who has worked with only one organization all her life, and is now close to her retirement age, is unlikely to find an equally profitable position with another company because:
a. her productivity is very low. b. her firm-specific capital is of little use to other organizations. c. other organizations can not verify her previous work record. d. her preference for leisure is likely to be very high.