The benefit that Joan gets from eating cherries is an example of
A) when the external benefit equals the private benefit.
B) a private benefit.
C) an external benefit.
D) an external cost.
E) the marginal social cost of eating cherries.
B
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If an average cost pricing rule is imposed on the natural monopoly shown in the figure above, then consumer surplus will be
A) $0. B) $8 million. C) $9 million. D) $16 million.
Conscription is a more advantageous way to obtain military personnel when _____
a. expenditures on welfare are low b. the conscripted are paid the same as a volunteer army c. the army is large relative to the size of the civilian population d. the country is a dictatorship
The theory that regulators' behavior will eventually be compromised by the special interests they regulate is known as the
A. capitulation hypothesis. B. captive hypothesis. C. creative hypothesis. D. capture hypothesis.
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