The balance sheet of the central bank is
Assets Liabilities
Gov't bonds $5000 Currency $2100
Gold $500 Reserves of commercial banks $3400
The consolidated balance sheet of commercial banks is
Assets Liabilities
Reserves at the central bank $3400 Deposits $14400
Loans $12000 Commercial bonds issued by banks $1000
If the required reserve-deposit ratio is 15%, can commercial banks increase the amount of loans by at least $1000?
A. Yes, by buying back the bonds and depositing the proceeds into the reserve account at the central bank.
B. Yes, by lowering reserves by $1000.
C. No, because the amount of deposits exceeds the amount of loans.
D. Yes, but only if some of the newly issued loans are redeposited to the banks.
E. No, because then the reserve-deposit ratio will fall below 15%.

Sheldon has the following year-end account balances: accounts receivable, $5,000; supplies, $12,000; equipment, $18,000; accounts payable, $17,000; stockholders’ equity, $43,000. the cash account balance was not available at year-end. given the account balances listed, the balance in the cash account should be?

Eileen's elegant earrings produces pairs of earrings for its mail order catalogue business. each pair is shipped in a separate box. she rents a small room for $150 a week in the downtown business district that serves as her factory. she can hire workers for $275 a week. there are no implicit costs. what is the marginal product of the second worker?

Suppose there are three types of consumers who attend concerts at your university’s performing arts center: students, staff, and faculty. each of these groups has a different willingness to pay for tickets; within each group, willingness to pay is identical. there is a fixed cost of $1,000 to put on a concert, but there are essentially no variable costs. for each concert: i. there are 140 students willing to pay $20. (ii) there are 200 staff members willing to pay $35. (iii) there are 100 faculty members willing to pay $50. a) if the performing arts center can charge only one price, what price should it charge? what are profits at this price? b) if the performing arts center can price discriminate and charge two prices, one for students and another for faculty/staff, what are its profits? c) if the performing arts center can perfectly price discriminate and charge students, staff, and faculty three separate prices, what are its profits?