Refer to the figure below. Private markets will provide ________ units of this good per day, and the socially optimal number of units per day is ________. 
A. H; G
B. G; F
C. F; G
D. H; F
Answer: B
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Kathy and Amy paint pictures and do caricatures to sell to tourists. In one day, Kathy can either paint two pictures or do four caricatures. In one day, Amy can either paint three pictures or do three caricatures
For both Kathy and Amy, what is the opportunity cost of painting one picture? Who has the comparative advantage in painting pictures and who has the comparative advantage in doing caricatures? How might they be able to increase their total output?
Liquidity refers to the
a. rapidity with which money flows through the economy. b. ease with which an asset can be converted into cash. c. ease with which banks move funds from checking to savings accounts. d. All of the above are correct.
When a society takes increasing amounts of resources and applies them to the production of a specific good, resulting in increasing opportunity costs for each additional unit produced, which of the following applies?
A) the law of demand B) the law of supply C) the law of scarcity D) the law of increasing additional costs
Refer to Scenario 9.9 below to answer the question(s) that follow. SCENARIO 9.9: Sponsors invest $250,000 in a new greeting card business on the promise that they will earn a return of 10% per year on their investment. The business sells 52,000 greeting cards per year. The fixed costs for the business include the return to investors and $79,000 in other fixed costs. Variable costs consist of wages ($1,000 per week) plus materials, electricity, etc. ($3,000 per week). The business is open 52 weeks per year.Refer to Scenario 9.9. The profit for the business is ________ when the average price per greeting card is $7.50.
A. $78,000 B. $182,000 C. $286,000 D. $311,000