Describe the three major units of the Federal Reserve System and their functions.
What will be an ideal response?
First, the Federal Reserve is overseen by the Board of Governors. This Board is responsible for control of the supply of money and the banking system. The President appoints the seven members of the Board. Second, there are twelve regional Federal Reserve Banks. They serve as central banks, quasi-public banks, and bankers’ banks. Third, the Federal Open Market Committee (FOMC) helps the Board by establishing policy over the buying and selling of government securities.
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During World War II, a labor shortage emerged in some markets. New recruits into the civilian labor force included
(a) teenage females. (b) married women. (c) retired people 65 years of age or older. (d) all of the above.
Suppose Bev's Bags makes two kinds of handbags-large and small. Bev rents an industrial space where she keeps the fabric, the industrial sewing machine, her measuring board and cutting shears, extra needles, thread and buttons, and labels. If Bev were to produce no bags, which of the following is true regarding Bev's costs?
A. The variable cost of fabric would drop to zero. B. The fixed cost of thread would stay the same. C. The variable cost of cutting shears would drop to zero. D. All of these are true.
You can conclude from the above graph that
A. new firms will enter the industry.
B. existing firms will leave the industry.
C. the industry is in long run equilibrium.
D. it is unclear whether the industry is in the short run or the long run.
Refer to the graph shown, which shows total product. At point A:
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A. marginal product is at its minimum point. B. marginal product is at its maximum point. C. average product is at its maximum point. D. marginal product is zero.