What are the limitations to the Fed's independence?
What will be an ideal response?
First, the president can exercise control over the membership of the Board of Governors. In addition, the president may appoint a new chairman every four years. Second, although the Fed's significant net income exempts it from requesting money from Congress, the Fed remains a creation of Congress, so Congress can amend the Fed's charter and powers—or even abolish it entirely.
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Suppose that along a linear demand curve, the elasticity of demand is equal to 1 when the price is $4 and the quantity is 100 units. Then the
A) total revenue is at its maximum when 100 units are produced. B) marginal revenue is positive at 100 units. C) marginal revenue is negative at 100 units. D) Both answers A and B are correct. E) Both answers A and C are correct.
Calculating expected value involves:
A. estimating how likely different outcomes are, and estimating the financial implications of each outcome. B. predicting the most likely outcome and assuming that that event will occur. C. assuming the worst outcome will occur and evaluating the financial implication of that outcome. D. None of these statements is true.
Net benefit is equal to total benefit minus marginal cost
a. True b. False Indicate whether the statement is true or false
Refer to the information provided in Figure 2.4 below to answer the question(s) that follow.
Figure 2.4According to Figure 2.4, as the economy moves from Point E to Point A, the opportunity cost of hybrid cars, measured in terms of motorcycles
A. increases. B. initially increases, then decreases. C. decreases. D. remains constant.