If society is experiencing a net social cost from the production of a good, this implies that
A. the socially optimal level of output is being produced and society is willing to accept the costs that result.
B. producers would rather produce the output at which marginal social cost equals the demand for the good.
C. negative externalities are involved in the production of this good.
D. none of the above
Answer: C
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The working-age population includes
A) people over the age of 16 who are in the Army. B) employed and unemployed people over the age of 16. C) those in jails and hospitals. D) youngsters between the ages of 14 and 16 if they are working at least part time. E) only employed people over the age of 16.
Macroeconomic variables that the Fed cannot control directly but can influence fairly predictably, and which are related to the Fed's goals, are known as
A) instruments. B) tools. C) intermediate targets. D) initial targets.
The sentiment for increased deregulation in the late 1970's and early 1980's has been felt most significantly in the price regulation of
a. coal b. grain c. transportation d. automobiles e. electric power generation
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