Jack is thinking of starting a sweater company. Sweaters operate in a perfect competition market, which means Jack will do which of the following?
a. Be unable to enter the sweater industry because only one firm is allowed to sell sweaters
b. Face high and expensive restrictions on starting his business
c. Face no barriers to enter the industry and start his business
d. Need to get permission from the local government and from his potential competitors
c. Face no barriers to enter the industry and start his business
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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
Economic growth is:
A. an increase in our economy's potential output. B. represented by the long-run aggregate supply curve shifting to the right. C. a result of having more natural resources, land or capital. D. All of these are true.
Given $1,000.00, the following spot exchange rates, and assuming zero transaction costs, illustrate and explain how you could use triangular arbitrage to profit on the disequilibrium in the foreign exchange market. The price of the euro (€) in terms of U.S. dollars is $1.20. The price of the British pound (£) in U.S. dollars is $1.30, and the cross rate between the € and the £ is 0.89 pounds per euro.
What will be an ideal response?
The Lawn Ranger, a landscaping company, has total costs of $7,000 and total fixed costs of $5,000. The Lawn Ranger's total variable costs are
A. $2,000. B. $3,000. C. $5,000. D. indeterminate because the firm's output level is unknown.