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 the market price of hay ________, then to maximize profits this farmer should produce 350 bales of hay.
A. falls to $20
B. falls to $18
C. falls to $4
D. stays at $24
Answer: B
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The over-the-counter (OTC) market is an example of a(n)
A) dealer market. B) brokered market. C) auction market. D) equilibrium market.
In a market economy, differences in incomes: a. reflect the relative scarcity of resources
b. provide individuals with an incentive to supply resources that are valued by others. c. determine the income distribution among market participants. d. all of the above are correct.
Surplus
What will be an ideal response?
Which of the following things can a government do to lower the costs of inflation?
a. sell inflation-indexed bonds and rewrite tax laws so that real rather than nominal gains are taxed b. sell inflation-indexed bonds but not rewrite tax laws so that real rather than nominal gains are taxed c. rewrite tax laws so that real rather than nominal gains are taxed, but not sell inflation-indexed bonds d. neither sell inflation-indexed bonds nor rewrite tax laws so that real rather than nominal gains are taxed