If the banking system has demand deposits of $200,000, total reserves equal to $60,000, and a required reserve ratio of 25 percent, the banking system can increase the volume of loans by a maximum of
A. $10,000.
B. $60,000.
C. $40,000.
D. $200,000.
Answer: C
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As long as the value of additional units of output exceed the opportunity cost of that output, _____
a. it will not be produced b. it likely will not be produced c. it will be produced d. it is likely to be produced
If a firm decides to ignore the reactions of its rivals to its policies, the appropriate model to analyze its behavior is
a. game theory. b. perfect competition. c. monopoly. d. cartels.
Refer to the following graph. The price of labor is $3 per unit: 
What is the marginal rate of technical substitution at point B?
A. 0.75 B. 1 C. 1.7 D. 0.6
If the demand for steak (a normal good) shifts to the left, the most likely reason is that:
A. consumer incomes have fallen. B. cattle production has declined. C. the price of steak has risen. D. the price of cattle feed has gone up.