Refer to the information provided in Figure 8.9 below to answer the question(s) that follow. 
Figure 8.9
Refer to Figure 8.9. If this farmer produces the profit-maximizing quantity when the market price is ________, her profit is $0.
A. $24
B. $20
C. $18
D. $4
Answer: C
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While the debate between output and the environment is subjective, all countries should aim to be where on the production possibility frontier?
a. Inside the PPF with allocative efficiency b. Outside the PPF with allocative efficiency c. Inside the PPF with productive efficiency d. On the PPF with productive efficiency
Economists argue that when the price of a textbook rises, students reduce their quantity demanded of textbooks. This cause-and-effect relationship holds only under conditions of
a. moderate price increases b. market flexibility c. complete information d. ceteris paribus e. consumer sovereignty
Psychological incentives:
A. are not important in non-economic settings. B. never serve as commitment devices. C. can serve as commitment devices. D. are not important in economic settings.
The figure above shows the money market. At which interest rate are people selling bonds and thereby changing the interest rate?
A) 4 percent B) 5 percent C) 6 percent D) 6 percent and 4 percent E) 6 percent, 5 percent, and 4 percent