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 is regulated to act as a perfectly competitive firm (instead of the monopoly level),
A. the net social gain to society equals ACF.
B. output would increase from 500 to 600 units.
C. the firm will earn profits of BEC.
D. consumer surplus would increase by the area FGBC.
Answer: D
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The adverse selection of wage cuts argument points out that the productivity of workers will increase if they are paid more, and so employers will often find it worthwhile to pay their employees somewhat more than market conditions might dictate
a. True b. False Indicate whether the statement is true or false
Which of the following does not reduce the potential burden of an increase in debt on future generations?
a. the growth rate of output is high b. in response to increased debt, parents save more to leave their children larger bequests c. budget deficits raise interest rates d. All of the above are correct.