Suppose the Tooth Fairy paid 50 cents for a tooth in 1970 . The CPI in 1970 was 38.8, while the CPI in 2010 was 218.1 . What is the value of the Tooth Fairy's payment in 2010 dollars?

The above figure shows the situations of a monopolistic competitor in the short run. To maximize profits, the firm should produce

A) 10,000 units. B) 12,000 units. C) 13,000 unit. D) somewhere between 10,000 and 12,000 units.

A bank faces a required reserve ratio of 5 percent. If the bank has $200 million of checkable deposits and $15 million of total reserves, then how large are the bank's excess reserves?

a. $10 million b. $0 c. $5 million d. $15 million