The most a bank could lend at any time without altering its assets is an amount equal to its:
A. checkable deposits.
B. excess reserves.
C. reserves.
D. net worth.
Answer: B
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Resources can be purchased
A) exclusively through the government. B) in the product markets. C) in the factor markets. D) at a grocery store.
Figure 7-17
Which of the following statements must be true when a firm makes choices that put it at point A in Figure 7-17?
A. The firm is minimizing its cost of producing 100 units of output. B. The ratio of the marginal physical products of labor and of land equals the ratio of the prices of labor and of land. C. The firm first decided how much output to produce and then decided how to produce it. D. All of the responses are true.
Workers’ reluctance to take nominal pay cuts offers a feasible explanation of why the Phillips Curve relation breaks down when there is deflation.
a. true b. false
Refer to the information provided in Figure 19.1 below to answer the question(s) that follow. 
Figure 19.1 Refer to Figure 19.1. The payroll tax imposed initially
A. reduced the equilibrium wage rate by $5 per hour. B. did not change the equilibrium wage rate. C. increased the equilibrium wage rate by $3 per hour. D. reduced the equilibrium wage rate by $3 per hour.