Refer to Figure 15-17. An economics professor argues: "I think the course should be priced so as to achieve economic efficiency." Which price should this faculty member favor?

The deposit expansion multiplier would increase if the Fed were to

A) raise the required reserve ratio. B) lower the required reserve ratio. C) raise the discount rate. D) sell bonds.

Which of the following best defines "economies of scope"?

A) As output expands the cost of producing a good decreases. B) As output expands the cost of producing a unit of a good decreases. C) Because firms use specialized resources to produce a range of goods, as the number of products produced increases, the cost of producing a unit decreases. D) Costs increase as firms seek to find more consumers.