When considering perfect competition the absence of entry barriers implies that
A) no firm can enter the industry.
B) firms can enter but cannot get out of the industry easily.
C) all firms will earn economic profit.
D) firms can enter and leave the industry without serious impediments.
Answer is D) firms can enter and leave the industry without serious impediments.
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Based on the figure below. Starting from long-run equilibrium at point C, an increase in government spending that increases aggregate demand from AD to AD1 will lead to a short-run equilibrium at point ________ creating _____gap. 
A. D; an expansionary B. B; no output C. B; expansionary D. A; a recessionary
Select the group that best represents the basic factors of production
A) land, labor, capital, entrepreneurship B) land, labor, money, management skills C) land, natural resources, labor, capital D) land, labor, capital, technology
Many states charge a 10-cent deposit on every can of soda sold. A purchaser pays an extra 10 cents per can and will get his or her money back by returning the empty can to a store. This policy encourages recycling by
A. lowering the willingness to pay for recycling materials. B. shifting in the demand curve for canned soda. C. raising the opportunity cost of discarding empty cans. D. taxing the production of canned soda.
A profit-maximizing firm employs resources to the point where
A. MRP = MRC. B. MP = product price. C. MRC = MP. D. resource price equals product price.