The In the News article in the text titled "Fiscal Policy in the Great Depression" discusses fiscal spending and taxation. During the Great Depression, the federal government pursued a policy of fiscal restraint that led to
A. An increase in aggregate demand.
B. An increase in taxes.
C. A decrease in the structural deficit.
D. An increase in the structural deficit.
Answer: C
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In the figure above, for each CD, the price a consumer is willing to pay is equal to the
A) economy's marginal social cost of producing that CD. B) consumer's own marginal benefit from consuming that CD. C) consumer's total consumer surplus. D) Both answers A and B are correct.
Which of the following firms operates in a natural monopoly?
a. Telephone company. b. Electric company. c. Water company. d. All of these.
Which of the following is a good example of efficient specialization and voluntary exchange?
a. A college professor hires someone to rototill a garden for spring planting. b. A college professor works on the engine of a car for a neighbor who is a mechanic. c. A lawyer decides to babysit his young child and agrees to do so for others for cash. d. A physician agrees to help a neighbor work on her income tax return in exchange for her bookkeeping services.
In Figure 45.1, the added revenue that employers bring in from the work of their employees at the equilibrium wage-labor combination is 
Figure 45.1
A. OBCL*. B. ABC. C. OACL*. D. OW*CL*.