The first test of the Federal Reserve as lender of last resort occurred with the:
A. introduction of flexible exchange rates in the U.S. in 1971.
B. attack on Pearl Harbor by the Japanese.
C. stock market crash in 1929.
D. widespread failures of Savings and Loans in the 1980's.
Answer: C
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Justin Field just stopped at the Exxon station on the way to campus and bought four Butterfinger candy bars, two 20-ounce bottles of grape-watermelon Snapple, and 10 gallons of gas. His marginal-utility-to-price ratios are 3.21 for the Butterfingers,
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James Anderson used to work in a reputed multi-national company. During a recession, he lost his job. After a few years, he was unable to get a job and his son was forced to forgo his college education. Mr. Anderson's unemployment resulted in _____
a. a loss of lifetime earnings b. a loss of human capital c. the deterioration of health d. a loss of social cohesion
According to the superstar phenomenon, the most talented person in the following occupations is likely to earn extremely high wages except
a. an author. b. an auto mechanic. c. a singer. d. an advice columnist.