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