Author Question: At the current quantity of table saws, the marginal social cost is more than the marginal social ... (Read 28 times)

schs14 · **on:** Jun 29, 2018

At the current quantity of table saws, the marginal social cost is more than the marginal social benefit. Then

A) production of table saws should be decreased to reach the efficient level.
B) production of table saws should be increased to reach the efficient level.
C) production of table saws is currently at the efficient level.
D) producer surplus will be larger than consumer surplus.

Question 2

A bank has no excess reserves. Then it receives a new deposit for 100,000. If it has a desired reserve ratio of 20 percent, by how much can it increase its loans?

A) 20,000
B) 80,000
C) 120,000
D) 180,000