Which condition will encourage competition?
A. A small number of buyers and sellers in a market.
B. The freedom of sellers and buyers to enter or exit an industry.
C. Government licensing requirements in order to enter an industry.
D. The government serving as the only supplier of goods to consumers.
Answer: B
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Refer to the figure below. 
In the figure, a business cycle peak is shown by which point(s)?
A. D only B. A and C and E C. E only D. B and D
The MC = MR rule for profit maximization applies to monopolists, as well as to firms in perfect competition
Indicate whether the statement is true or false
The quantity of money demanded to satisfy transactions needs
a. is intended for unexpected expenditures b. increases with the level of nominal GDP c. decreases with the level of nominal GDP d. is unrelated to either national income or the interest rate e. varies inversely with the liquidity demand for money.
Following an anticapitalist coup, Freedonia forces all citizens to turn in and stop using all credit cards. What is the most likely effect of this on velocity?
a. It will decrease. b. It will increase. c. It will remain constant. d. Velocity is unrelated to credit cards.