Many art galleries keep 60% of the sale price of a painting. However, art galleries do not typically pay the artist while the painting hangs on the wall. This form of contingency contract may be efficient if
A) the artist is less risk averse than the gallery.
B) the gallery is less risk averse than the artist.
C) the artist is unable to diversify across galleries or paintings.
D) the gallery is unable to diversify across artists of paintings.
A
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Refer to the figure below. If the government imposed a price ceiling of $40, what would happen in this market? 
A. There would be excess supply. B. The equilibrium quantity would fall. C. The price ceiling would have no effect. D. There would be excess demand.
Marginal cost is the cost
A) that your activity imposes on someone else. B) that arises from an increase in an activity. C) of an activity that exceeds its benefit. D) that arises from the secondary effects of an activity.
Milton Friedman argued that as long as
A) the unemployment rate is higher than the inflation rate, the economy is not in long-run equilibrium. B) Real GDP grows, the inflation rate will fall. C) the expected inflation rate is not equal to the actual inflation rate, the economy is not in long-run equilibrium. D) nominal wages rise, so do real wages. E) none of the above
Refer to the information provided in Table 6.1 below to answer the question(s) that follow. Table 6.1Number of Hamburgers per DayTotal UtilityMarginal Utility130?252?367?476?5?4Number ofSodas per DayTotal UtilityMarginal Utility120?235?347?457?5?7Refer to Table 6.1. The total utility of five hamburgers per day is
A. 76. B. 80. C. 96. D. indeterminate from this information.