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 may be greater than the area BEC to the extent that
A. the firm may have engaged in rent-seeking behavior, the cost of which would also be avoided.
B. firms facing competition may have a greater incentive to cut costs and innovate, which results in gains to society.
C. society may value the increase in consumer welfare on equity as well as efficiency grounds.
D. All of the above are correct.
Answer: D
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Which of the following statements is true?
A) Using fewer observations will strengthen the force of an empirical argument. B) The number of observations used does not affect the strength of an empirical argument. C) Empirical arguments can be supported without the use of data. D) Using a large data set will strengthen the force of an empirical argument
Government tax revenues ________ during an expansion and ________ during a recession, which leads to larger budget deficits during the ________ phase of the business cycle
A) decrease; increase; expansion B) decrease; decrease; expansion C) increase; decrease; expansion D) increase; decrease; recession E) increase; increase; recession
Refer to Figure 4-18. How much of the tax is paid by buyers?
A) $8 B) $5 C) $4 D) $3
In practice, the Board of Governors and FOMC typically defer to the policy proposals of the:
A) President B) Chair of the Fed C) Secretary of Treasury D) Speaker of the House