Suppose the XYZ bank has excess reserves of $4,000 and demand deposits of $80,000 . If the required reserve ratio is 25 percent, the banks total reserves equal:
a. $16,000.
b. $20,000.
c. $24,000.
d. $84,000.
c
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Suppose Acme and Mega produce and sell identical products and face zero marginal and average cost. Below is the market demand curve for their product. 
Suppose Acme and Mega decide to collude and work together as a monopolist with each firm producing half the quantity demanded by the market at the monopoly price. If Mega cheats on the agreement by reducing its price to $1 while Acme continues to comply with the collusive agreement, then Mega's economic profit will be ________.
A. $200 B. $150 C. $100 D. $75
The return that an entrepreneur can expect to earn, on average, is called
A) profit. B) normal profit. C) economic profit. D) accounting profit.
All else constant, if butter and margarine are substitute goods, then as the price of butter rises,
a. the demand for margarine will fall b. the quantity of butter demanded will fall c. the demand for butter will fall d. the demand for butter will rise e. butter and margarine will become complementary goods, provided that butter is a normal good
Given an initial deposit of $5,000 and a legal reserve requirement of 25%, the amount of money potentially created by the banking system is
a. $15,000 b. $20,000 c. $25,000 d. $10,000 e. $30,000