If the social costs of refining oil are greater than the private costs of oil refining, then
A. users of products that use refined oil are paying too much for the products.
B. the amount of oil refining needs to increase in order to bring social costs and private costs in line with each other.
C. the external costs of oil refining are greater than the social costs of oil refining.
D. there is too much oil refining.
Answer: D
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Based on the figure below. Starting from long-run equilibrium at point C, a tax cut that increases aggregate demand from AD to AD1 will lead to a short-run equilibrium at point ________ and eventually to a long-run equilibrium at point ________, if left to self-correcting tendencies. 
A. D; C B. B; C C. B; A D. D; B
Suppose the nominal interest rate is 4% and the rate of inflation is 3%. The real interest rate is therefore
A) 7%. B) 1%. C) 0%. D) -1%. E) none of the above.
Unemployment is a lagging indicator because:
A. employers wait to see how bad a recession looks before making the difficult decision to lay off workers. B. firms may first try to decrease or increase the hours of existing employees before changing levels of employment. C. employers wait to see how solid a recovery looks before committing to take on new employees. D. All of these are reasons that make unemployment a lagging indicator.
When farmers take part in the soil-bank program, they receive
a. additional allotments of acreage in the future b. income, including government subsidies, for goods produced on that land c. payments for producing nothing on the acres put into the soil bank d. preferential tax treatment e. residential property tax credits