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 engages in rent-seeking behavior to maintain their monopoly, the true net social cost of monopoly is
A. AGB and the portion of area FGBE that pays for the rent-seeking behavior.
B. FAC.
C. FGBC.
D. BEC and the portion of area FGBE that pays for the rent-seeking behavior.
Answer: D
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The Country of Rhozundia is blessed with rich copper deposits. The cost of copper produced (relative to the cost of widgets produced) is therefore very low. From this information we know that
A) Rhozundia has a comparative advantage in copper. B) Rhozundia should import copper and export widgets. C) Rhozundia should export both widgets and copper. D) Rhozundia should invest in more in widget production. E) Rhozundia may or may not have a comparative advantage in copper.
The reason protectionism remains strong in the United States is that
A) economists can produce any result they are hired to produce. B) economists cannot persuade the general public that free trade is beneficial. C) economists do not really understand how the real world works. D) the losses associated with protectionism are diffuse, making lobbying by the public impractical. E) economists cannot agree on trade policy recommendations.
An example of an oligopoly is: a. the restaurant industry. b. the wheat market
c. the cigarette industry. d. the beef industry.
The marginal tax rate for a lump-sum tax
a. is always positive. b. is always negative. c. is zero. d. can take on any value but must be greater than the average tax rate.