Author Question: If a good is produced up to the point where marginal social benefit equals marginal social cost, ... (Read 39 times)

schs14 · **on:** Jun 30, 2018

If a good is produced up to the point where marginal social benefit equals marginal social cost, then:
a. social welfare is maximized.
b. the good is overproduced and the market is inefficient.
c. firms are earning zero profits.
d. all externalities have been eliminated.

Question 2

If the required reserve ratio is 10 percent and a bank receives a new deposit for 100,000 . then the:
a. bank must keep 5,000 in excess reserves.
b. bank's required reserves increase by 45,000.
c. bank's liabilities increase by 100,000.
d. bank can increase its loans by up to 50,000.
e. bank can increase its loans by up to 400,000.