The perpetual problem of scarcity forcing people to make choices is the basis for the definition of economics

Does the gross domestic product account measure the market value of all goods and services?

A) No, because that would include double-counting. B) Yes, because the data is readily available. C) Yes, except for illegally exchanged goods and services. D) Yes, otherwise the gross domestic product accounting system is not a reliable indicator of economic activity.

Refer to Table 25-2. Suppose a transaction changes a bank's balance sheet as indicated in the following T-account, and the required reserve ratio is 10 percent. As a result of the transaction, the bank can make a maximum loan of

A) $0. B) $800. C) $7,200. D) $8,000.