State two characteristics of the long-run equilibrium under perfect competition
In a long-run equilibrium (1) there are no firms outside the market that can earn an economic profit by entering it, and (2) no firms that are taking losses remain in the market.
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The fact that every dollar that the government spends or transfers must ultimately be provided by the taxes and user charges it collects plus government borrowing is known as the
A) government balance sheet constraint. B) government budget constraint. C) tax collection constraint D) user charge constraint.
Refer to the information provided in Figure 17.1 below to answer the question(s) that follow. 
Figure 17.1 Refer to Figure 17.1. Suppose John's utility from income is given in the figure. From this we would say that John is
A. risk-loving. B. risk-averse. C. a risk taker. D. risk-neutral.
Refer to the information provided in Table 2.2 below to answer the following question(s).Table 2.2?MollyPeteAvatar Design68Tattoo Design32Refer to Table 2.2. To maximize total production,
A. Molly and Pete should both split their time between designing avatars and tattoos. B. Molly should design avatars and tattoos, but Pete should only design avatars. C. Pete should specialize in avatar design and Molly should specialize in tattoo design. D. Molly should specialize in avatar design and Pete should specialize in tattoo design.
An exception to the law of one price occurs if
A) the good is not tradeable. B) demand for the good is stronger in some countries than in others. C) exchange rates are flexible, rather than fixed. D) interest rates differ across countries.