Refer to the information provided in Figure 13.9 below to answer the question(s) that follow. 
Figure 13.9 Refer to Figure 13.9. If Ohio Edison is regulated to act as a perfectly competitive firm (instead of the monopoly level),
A. consumer surplus would increase by the area FGBC.
B. the net social gain to society equals ACF.
C. output would increase from 500 to 600 units.
D. the firm will earn profits of BEC.
Answer: A
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When private expenditures decrease as a result of increased government spending, this is known as
A) the multiplier effect. B) the stabilizer effect. C) government deficit spending. D) the crowding out effect.
Jerry's Marginal Utility for consuming beer and pizza with $8.00 in income
Referring to the above table, suppose Jerry's ratios of marginal utility of beer to the price of beer and the marginal utility of hotdogs to the price of hotdogs are equal. If the price of beer increases
A. Jerry will probably consume less beer and fewer hotdogs. B. Jerry will probably consume less beer and more hotdogs. C. Jerry will probably consume more beer and fewer hotdogs. D. Jerry will still consume the same amount of beer and hotdogs.
The short-run Phillips curve shifts when
A) the actual inflation rate changes and also when the expected inflation rate changes. B) the inflation rate increases and also when the unemployment rate decreases. C) the expected unemployment rate changes and also when the expected inflation rate changes. D) the natural unemployment rate changes and also when the expected inflation rate changes. E) the actual unemployment rate changes and also when the expected unemployment rate changes.
While deposit insurance was designed to make the banking industry more stable, it contributed to the banking crisis of the 1980s because: a. the FDIC only insured commercial banks
b. the ceiling on insured deposits was too low. c. too many banks were insufficiently insured. d. depositors became too complacent about the risks that the banks were taking. e. unsafe banks were "kicked out" of the deposit insurance system.