Which of the following is not a function of the Federal Reserve System?
a. limiting the national debt
b. setting the required reserve ratio for the deposit holdings of depository institutions
c. buying and selling government bonds to control the size and growth rate of the money supply
d. controlling inflation
a
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Explain how usury laws distort the market for funds. What is the most likely result if a usury law is passed and enforced?
The marginal product of any input into the production process is the:
A. constant ratio of inputs to outputs. B. increase in output that is generated by an additional unit of input. C. ratio total output divided by total quantity. D. decrease in input that is generated by an additional unit of output.
Businesses that fail to account for implicit costs, like the strawberry farmer, Hiroshi Fujishige, who failed to consider the enormous opportunity of selling his property to Disneyland, will
A. Make higher-than-normal profits. B. Make more money when they shut down. C. Have to increase revenues in order to stay in business. D. Go out of business immediately.
In a Cournot oligopoly with N firms and identical marginal costs, the relationship between the price elasticity of demand for the firm and that of the market is:
A. EF = NEM. B. EF = N/EM. C. EF = EM. D. EF = EM/N.