Which of the following would be a consequence of a bank choosing not lend its excess reserves:
A. Increased risk-taking by the bank.
B. A decrease in the bank's required reserves
C. An increase in the bank's reserve-deposit ratio
D. An increase in the bank's total reserves
Answer: C
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A noncooperative game situation may occur when
A) firms collude. B) firms find collusion too costly. C) firms merge. D) firms agree to price fixing.
Refer to Figure 7-4. The efficient price of medical services is
A) $25. B) $40. C) $55. D) >$55.
A recession is most commonly caused by:
a. an increase in aggregate demand. b. a decrease in aggregate demand. c. an increase in aggregate supply. d. a decrease in aggregate supply.
Refer to the figure below. If Laura and Chris are the only two consumers in this market, then when the price of hamburger decreases from $2.50 to $2.00 per pound, the quantity demanded in the market will ________ by ________ pound(s) per week. 
A. increase; 1.5 B. decrease; 1 C. decrease; 1.5 D. increase; 1