The concept that an additional dollar of expenditures will result in the creation of more than one dollar's worth of real GDP is called
A. the multiplier effect.
B. economic growth.
C. the business cycle.
D. fiscal policy.
Answer: A
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If the social cost of producing a good or service exceeds the private cost
A) the sum of consumer surplus and producer surplus is maximized. B) a positive externality exists. C) the market achieves economic efficiency. D) a negative externality exists.
The government budget deficit is
a. the difference between government purchases and government revenues from bonds and taxes b. caused by a lack of business sector investment c. created when the government expenditures exceed net taxes d. caused by leakages in the economy e. is created by government injections
New Source Performance Standards (NSPS)
a. were revoked by the Clean Air Act Amendments of 1990 b. are applicable to new and modified stationary sources c. are performance-based standards defined by the EPA d. are more lenient than emissions limits for existing sources e. none of the above
Columns 1 and 2 make up a portion of a monopolist's production function for a single variable input, labor. Columns 2 and 3 represent the demand function facing the monopolist over this range of output: 
If an increase in consumers' income increases product price by $2 at each level of output, how many units of labor will the firm employ at a wage rate of $300?
A. 3 B. 4 C. 5 D. 6 E. 7