Amber has opened a coffee shop for many years on a piece of land that she has also owned. She has also made accounting profits from the coffee shop
This year, rents in the area rose considerably, and Amber responded by deciding to sell the land and the coffee shop to an apartment builder. How can you explain Amber's decision to sell her business?
Even though Amber has been making accounting profits, her decision to sell her business was based on the opportunity cost of the land, which obviously had risen to the point that she made a negative economic profit on her coffee shop business.
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Suppose that the reserve ratio is 6% and applies only to checkable deposits. A bank has noncheckable time deposits of $300 million, checkable deposits of $100 million, and reserves of $8 million. What are the excess reserves of this bank?
A. $2 million B. $6 million C. $5.6 million D. $2.4 million
What are the three motives for holding money?
A) the medium of exchange motive, the store of value motive, and the unit of account motive B) the transaction motive, the speculative motive, and the liquidity motive C) the transaction motive, the investment motive, and the liquidity motive D) the transaction motive, the speculative motive, and the precautionary motive
Refer to the information provided in Figure 2.5 below to answer the question(s) that follow.
Figure 2.5Refer to Figure 2.5. The economy is currently at Point A. The opportunity cost of moving from Point A to Point B is the
A. 30 LCD televisions that must be forgone to produce 60 additional OLED televisions. B. 90 LCD televisions that must be forgone to produce 20 additional OLED televisions. C. 30 LCD televisions that must be forgone to produce 20 additional OLED televisions. D. 120 LCD televisions that must be forgone to produce 40 additional OLED televisions.
Refer to the information provided in Figure 16.3 below to answer the question(s) that follow. 
Figure 16.3Refer to Figure 16.3. If this firm is maximizing profits and is not required to take into account damages, it will produce
A. 0 units of output. B. 6 units of output. C. 15 units of output. D. 20 units of output.