When MR < MC for a firm, the firm should
A. increase output, unless P < AVC.
B. stay at the same level of output.
C. reduce its level of output.
D. stop producing.
Answer: C
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If Billy Bob's National Bank of Slingblade confronts a 10 percent reserve requirement and has excess reserves of $20,000, what is the maximum amount of additional loans that the bank can extend?
a. $2,000 b. $18,000 c. $20,000 d. $200,000
Which of the following is a final good or service?
a) a haircut purchased by a father for his 12 year-old son b) fertilizer purchased by a farm supplier c) diesel fuel bought for a delivery truck d) Chevrolet windows purchased by a General Motors assembly plant
You've purchased a car for $20,000 and now are deciding whether to have a sunroof installed for $800 and a security system installed for $200. The marginal cost of adding both the sunroof and the security system is:
A. $800. B. $1,000. C. $20,000. D. $21,200.
Referring to Table 4.1, Box B should be filled with 
A. $1 B. $0. C. $100. D. $200.