The above table shows Homer's utility from boxes of doughnuts. The marginal utility that Homer receives from the third box of doughnuts is equal to

Suppose you found $1,000 hidden in your mattress and deposited it in a demand deposit account at your bank. If the reserve requirement was 20 percent, the deposit would directly create ____ in excess reserves and ultimately lead to a ____ total increase in the money supply, if all banks in the system lend out 100 percent of their excess reserves

a. $800; $4,000 b. $800; $5,000 c. $1,000; $4,000 d. $1,000; $5,000

The dynamic process of competition

a. provides profit-seeking sellers with little incentive to heed consumer preferences. b. was shown by Adam Smith to be a major source of economic inefficiency. c. provides consumers with alternative suppliers and thus a mechanism with which they can discipline sellers. d. will permit business decision makers to earn long-run economic profit unless they are regulated by government officials.