There are several government agencies in the United States that regularly check the balance sheets of banks. This is done to ensure that:
a. banks take on risky projects that will earn high returns.
b. banks have a positive net worth.
c. banks earn sufficient profits

Complete this sentence: in a market system income is generally earned

A) independently of acts of exchange and production. B) arbitrarily and randomly. C) unproductively. D) in the process of its creation.

The base year matters for the computation of real GDP because

A) otherwise we cannot compute growth rates. B) relative prices can change over time. C) it allows an international comparison of GDP. D) it establishes a target for macroeconomic policy.