The monetary base is the
A) minimum reserve banks must hold to cover any losses from unpaid loans.
B) sum of coins, Federal Reserve notes, and banks' reserves at the Fed.
C) sum of gold and foreign exchange held by the Fed.
D) sum of government securities and loans to banks held by the Fed.
E) sum of coins, required reserves, and banks' loans.
B
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Flora's Flowers operates in a perfectly competitive market. At the point where marginal cost equals marginal revenue, ATC = $10, AVC = $5, and the price per unit is $7.50 . In this situation,
a. Flora earns positive profits in the short run b. Flora will shut down in the short run c. Flora's supply curve will shift to the left d. Flora's supply curve will shift to the right e. Flora earns negative profits in the short run but will remain open
Given the indifference curve and budget line below, which of the following must be true at point A?
A. MUA/PA < MUB/PB
B. MUA/PA > MUB/PB
C. MUA/PA = MUB/PB
D. PA/PB = MUB/MUA