Who runs the Federal Reserve System? Describe the organizational structure of the Fed
The Fed is run by the Board of Governors. There are 7 members of the Board of Governors, each appointed by the President of the United States with the confirmation of the U.S. Senate for 14 year terms. The Board of Governors are aided in their policy making by the Federal Advisory Council which consists of 12 prominent bankers, each appointed by the Presidents of the 12 Federal Reserve Banks located around the country. The Fed's chief policy-making body is the Open Market Committee which consists of the 7 Board of Governors plus 5 Federal Reserve District bank presidents.
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The solution of a game is dependent upon
a. predicted response of competitors b. the existence of a perfectly inelastic demand curve c. costs of production being constant d. economies of scale in production e. marginal revenue being equal to marginal cost
If the marginal propensity to consume, MPC, is less than 1 and a household's disposable income increases by $2,000, the household's consumption will
What will be an ideal response?
If the best lawyer in town is also the best at operating a word processor, then according to the theory of comparative advantage, this person should
A) split her time evenly between being a lawyer and a word processor. B) specialize in being a lawyer because its opportunity cost is lower. C) should pursue the activity she enjoys more. D) specialize in being a word processor because it is more capital-intensive.
You are in the market for a used 2013 Honda Accord. You know that half of the 2013 Accords are lemons and half are peaches. If you could be assured that the Accord you were buying was a peach, you would be willing to pay up to $10,000. On the other hand, you would only be willing to pay $2,000 for a lemon. You have no ability to discern whether any particular Accord is a lemon or a peach. Sellers of Accords, on the other hand, are likely to know whether their particular car is a lemon or a peach. Suppose sellers of lemons will sell their cars for $1,500 or more and peach sellers will be willing to sell their cars for $8,500 or more. You are willing to offer ________ for a car of unknown quality and ________ are willing to sell you their car.
A. $2,000; lemon owners only B. $5,000; lemon owners only C. $6,000; lemon owners only D. $8,500; both lemon and peach owners