Eco final

bank panics

in 1913 congress established the federal reserve system with the intention of putting an end to

Opportunity cost

the highest valued alternative that must be given up to engage in an activity

buying treasury securities

the primary tool the federal reserve uses to increase the money supply is

a security

A financial asset is considered _____ if it can be sold in a secondary market

increase in demand; increase in quantity demanded

An _____ is represented by a rightward shift of the demand curve witle an ____ is represented by a movement along a given demand curve

Medium of exchange

When a grocery store accepts your five dollar bill in exchange for bread and milk, the five dollars serves as a

choices; scarce

Economics is the study of _______ people make to attain their goals, given their _____ resources

Respond to economic incentives

Economists assume that rational people

5%

If the number employed is 190 million, he working age population is 230 million, and the number unemployed is 10 million, then the unemployment rate is

80%

If the number employed is 190 million, the number unemployed is 10 million and the working age population is 250 million, then the labor force participation rate is

40%

If the number of unemployed workers is 200 million and the number in the labor force is 500 million, what is the unemployment rate?

62.5%

If the number of unemployed workers is 200 million, the number of employed workers is 300 million and the working age population is 800 million what is the labor force participation rate?

Increase in quantity demanded

If, in response to a decrease in the price of coffee, the quantity demanded of coffee increases, economists would describe this as

three main monetary policy rules

Open market operations, exchange rate of the dollar against foreign curriencies, and government purchaces

rarely

Prior to 1970, mortages were rarely resold in the secondary market

a demand curve has shifted to the right

The phrase 'demand has increased' means

Scarcity

The study of economics arises due to

Barter economy

goods and services are exchanged for other goods and services