The main function of the Federal Reserve System is to:
A. supervise the operation of member banks.
B. control the money supply.
C. serve as the fiscal agent for the federal government.
D. clear checks from member banks.
Answer: B
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Miniville is an isolated town located on the southern shore of Lake Condescending, a very large lake. The western edge of Miniville is adjacent to impassable mountains and there are no towns or businesses for many miles to the east. The 300 residents of Miniville are evenly distributed along 3 miles of shoreline on the lake, east of the mountains. Lake Shore Drive, the only street in town, provides access to Miniville's homes and businesses. All residents live between the lake and the street; businesses locate on the other side of the street. Lake Shore Drive is 3 miles long, and the points labeled A, B, and C are 1, 2, and 3 miles from the western end of Lake Shore Drive, respectively. All residents of Miniville shop at the store located closest to their homes. src="https://sciemce.com/media/4/ppg__rrr0818190951__f1q219g1.jpg" alt="" style="vertical-align: 0.0px;" height="117" width="538" />If the first store to open in Miniville is located at A, to maximize the number of customers it attracts, the next store to open should locate:
A. at C.
B. just west of A.
C. at B.
D. just east of A.
In a free market, economic activity is coordinated by
a. central planners. b. prices. c. costs. d. majority rule.
Implicit and explicit costs are different in that:
A. implicit costs are relevant only in the short run. B. the former refer to nonexpenditure costs and the latter to out-of-pocket costs. C. explicit costs are relevant only in the short run. D. the latter refer to nonexpenditure costs and the former to out-of-pocket costs.
Legalizing all forms of illegal activities would
A. reduce both the underground economy and measured GDP. B. increase the size of the underground economy and reduce measured GDP. C. reduce the size of the underground economy and increase measured GDP. D. reduce measured GDP.