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 competition is introduced into the market, the net social gain ________ the area BEC to the extent that firms facing competition may have a greater incentive to cut costs and innovate which result in gains to society.
A. may be greater than
B. will be less than
C. will be everything beneath
D. will be equal to
Answer: A
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Which of the following is an example of an activity that creates an external cost?
i. a smoker emitting second-hand smoke ii. sulfur emitting from a smoke stack iii. throwing garbage on the roadside A) i only B) i and ii C) iii only D) ii and iii E) i, ii, and iii
You have the following data about the exchange rates between the Brazilian Real and the Guatemalan Quetzal. June 1, 2011 0.6752 Reales / Quetzales June 1, 2012 0.3481 Reales / Quetzales From this data you may conclude that
A) the Real depreciated. B) the Quetzal appreciated. C) the Quetzal depreciated. D) the Real was revalued.
Which of the following is not an example of a public policy?
a. rent-control laws b. minimum-wage laws c. taxes d. equilibrium laws
Refer to the information provided in Figure 26.7 below to answer the question(s) that follow.
Figure 26.7Refer to Figure 26.7. Potential output
A. is $400 million. B. is $700 million. C. is $800 million. D. cannot be determined from this information because aggregate demand is not given.