Economists attempt to discover explanations for events that are observed.

If we both have checking accounts in the same commercial bank and I write a check in your favor for $200, the bank's:

A. balance sheet will be unchanged. B. reserves and checkable deposits will both decline by $200. C. liabilities will decline by $200, but its net worth will increase by $200. D. assets and liabilities will both decline by $200.

In the former Soviet Union most goods and services were produced by ____________; in the United States most goods and services are produced by _____________.

A. the government; private enterprise B. the government; the government C. private enterprise; the government D. private enterprise; private enterprise