Answer the following statements true (T) or false (F)
1. Double coincidence of wants is associated with a barter economy.
2. The more volatile the inflation rate, the weaker the money supply as a standard of deferred payment.
3. The multiple expansion of the money supply is made possible because money withdrawn from one bank finds its way into other banks.
4. A decrease in the level of required reserves will decrease a bank’s ability to extend loans.
5. If banks had $10 million in legal reserves, $105 million in check able deposits, and a 10 percent reserve requirement, they would have to reduce their check able deposits or increase their reserves.
1. TRUE
2. TRUE
3. TRUE
4. FALSE
5. TRUE
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If an exhaustible resource is priced at marginal cost that remains constant over time, then
A) all owners of that resource earn rent. B) the price will stay constant over time. C) the percent price increase each year equals the rate of interest. D) the good is relatively scarce.
If education produces positive externalities and the government does not intervene in the market, we would expect
a. the market equilibrium price to be higher than the efficient equilibrium price b. the market equilibrium quantity to be lower than the efficient equilibrium output level. c. the market equilibrium quantity to be higher than the efficient equilibrium output level. d. none of the above
What causes the aggregate supply curve to have an upward slope in the short run, but a vertical slope in the long run?
Refer to the information provided in Figure 8.6 below to answer the question(s) that follow. 
Figure 8.6 Refer to Figure 8.6. Curve 2 is Outdoor Equipment's
A. average variable cost curve. B. average fixed cost curve. C. marginal cost curve. D. average total cost curve.