Assume a simplified banking system subject to a 25 percent required reserve ratio. If there is an initial increase in excess reserves of $100,000 . the money supply:

Managers of profit centers are usually given a lot of discretion because

a. They always do an excellent job b. They rarely do a good job c. The company can never judge their performance d. It is relatively easy to tie management pay to division performance

There are apartments in Chicago whose rooftops overlook Wrigley Field where the Chicago Cubs play at home. On game day you can find free riders on the roof enjoying _____________

a. a near public good b. free property rights c. a positive externality d. a pure public good e. excess utility