A tax that is based on the value of a good or service is an excise tax

If four workers can produce 18 chairs a day and five can produce 20 chairs a day, the marginal product of the fifth worker is

A) 2 chairs. B) 3 chairs. C) 4 chairs. D) 38 chairs.

A bank creates money when it:

a. gets new checkable deposits which the depositor formerly held as cash. b. has a loan paid off, which creates excess reserves for the bank. c. makes a loan from its excess reserves. d. holds back excess reserves because of an increase in the required reserve ratio. e. gets more excess reserves because of a decrease in the required reserve ratio.