If the required reserve ratio is 10 percent, currency in circulation is $400 billion, checkable deposits are $800 billion, and excess reserves total $0.8 billion, then the money supply is ________ billion

In his book The Wealth of Nations, Adam Smith employed the example of a pin factory in order to explain what economic concept?

A) why no firm would want to hire so many workers as to experience a negative marginal product of labor B) the relationship between the marginal and average product of labor C) the law of diminishing returns D) the division of labor

Which of the following is FALSE about intraindustry trade?

A) Economies of scale allow firms to enjoy lower average costs. B) It creates gains from trade. C) It is due to comparative advantage. D) It may involve heightened competition and lower prices for consumers. E) It increases consumer choice.