In a system with 100% reserve requirement, banks cannot create loans.

What is the purpose of competition?

a. to act as a regulating force in the marketplace b. to cause producers to attempt to put each other out of business c. to cause buyers to have to be careful about spending their money d. to act as a motivating force behind the free market

Which of the following would be counted as a final good for inclusion in GDP?

a. A piece of glass bought this year by a consumer to fix a broken window. b. A sheet of glass produced this year by Ford for windows in a new car. c. A tire produced this year and sold to a car maker for a new car sold this year. d. None of these would be counted in GDP.