Transactions costs in international financial markets are higher today than they were in the past

As a group, people with high incomes are likely to have

A) greater-than-average family inheritances and greater than average SAT scores. B) greater-than-average holdings of stocks and bonds and lower-than-average productivity. C) a stable marriage and no children. D) greater-than-average productivity and greater-than-average amounts of capital.

When do new firms tend to enter a competitive industry?

a. When the large firms in the industry are earning zero profit. b. When the smaller firms are leaving the industry. c. When the new entrants can earn positive profits. d. When there is an absence of fixed costs in the long run.