The Federal Reserve is
a. part of the executive branch of the government
b. not part of any branch of the government
c. part of the judicial branch of the government
d. part of both the legislative and the judicial branch of the government
e. part of both the executive and the legislative branch of the government
B
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Consider a setting in which there is a positive externality, but no negative externality. The market outcome is __________________; government can bring about the ___________________ outcome if it sets a subsidy equal to the __________________
A) inefficient; efficient; MEB B) inefficient; efficient; MEC C) efficient; inefficient; MPC D) inefficient; efficient; MPB E) inefficient; efficient; MSB
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 A to Point E, the opportunity cost of motorcycles, measured in terms of hybrid cars
A. remains constant. B. decreases. C. initially increases, then decreases. D. increases.
The above figure shows the market for anti-freeze. The government imposes the sales tax shown in the figure on sellers. How much tax revenue does the government raise from this tax?
A) $2,000 B) $3,000 C) $4,000 D) $6,000
The primary indicator of the Fed's stance on monetary policy is
A) the discount rate. B) the federal funds rate. C) the growth rate of the monetary base. D) the growth rate of M2.