The Federal Reserve System
a. was created by and is owned by the government
b. pursues independent fiscal policy at the behest of Congress
c. monitors prices but does not have the authority to act to curb inflation when it emerges
d. pursues an independent monetary policy that can conflict with the government's fiscal policy
e. only acts to lower taxes and increase spending when there are recessionary tendencies in the economy
D
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Congestion pricing
A) is an estimation of the price of being off of work with the flu. B) is an attempt to internalize the external costs of driving. C) is the raising of taxes on gasoline to support the construction of mass urban transit systems. D) works fine in theory but cannot work in the real world because the technology is lacking.
Graphically, the presence of an external cost that is ignored by producers can be shown as
A) a market supply curve to the left of the market supply curve for where the producers have to pay for the external cost. B) a market supply curve to the right of the market supply curve for which the producers have to pay for the external cost. C) a market supply curve the same as the market supply curve for which the producers have to pay for the external cost. D) the absence of a market supply curve.
What is the short-run breakeven point of operation in a perfectly competitive market?
Each of the following is a provision of the 1996 welfare reform law except that
A. the federal guarantee of cash assistance for poor children is ended. B. the head of every welfare family would have to work within 2 years or the family would lose benefits. C. after receiving welfare for two months adults must find jobs or perform community service. D. women who have more children while on welfare will have their benefits reduced.