808958
Description
Flashcards by casedlynch, updated more than 1 year ago
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Created by casedlynch
about 10 years ago
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| Question | Answer |
| If cost of factor of production falls, what happens to marginal cost curve (MC) | shifts down |
| MC curve slopes | upward |
| MB curve slopes | downward |
| the opportunity cost of a city block being used as a parking lot is | greater in new york city because the alternate uses are more valuable |
| Satisfaction from consuming goods or services is | the concept of utility |
| utility refers to | the pleasure, happiness, or satisfaction gained from engaging in an activity |
| Economic resources are: | natural, human, and manufactured inputs used to produce goods and services |
| Resources are classified as | labor, land, real capital, and entrepreneurs |
| three basic functions of money | medium of exchange, unit of account, and store of value |
| in runaway inflation | money fails as a medium of exchange |
| two components of the M1 money supply | currency in circulation and checkable deposits |
| largest component of M1 | currency |
| Component of M1 that is legal tender | currency |
| What near monies are included in the M2 money supply? | Noncheckable savings deposits, money market deposit accounts, small time deposits, and money market mutual fund balances |
| what percent of the M1 money supply is currency? | 56 percent |
| There is no concrete backing to the money supply in the US T or F | True |
| Who is responsible for maintaining moneys purchasing power? | The Board of Governors of the Federal Reserve System |
| The purchasing power of money is inversely related to | the price level |
| The chairperson of the Federal Reserve Board is selected by the | US president and confirmed by the senate |
| The federal reserve board of governors does what? | coordinates policies for the 12 federal reserve banks |
| The FOMC includes | The Board of Governors members and 5 of the 12 presidents of the federal reserve banks |
| Who has a permanent seat on the FOMC? | president of the new york fed |
| The FOMC does what | votes on the Fed’s monetary policy and directs the purchase or sale of government securities. |
| Other than its main role of controlling the supply of money, the functions of the Federal Reserve include | issuing Federal Reserve Notes, providing for check collection, and supervising the operation of banks. |
| Mortgage backed securities were one of the factors that exacerbated the financial crisis of 2007-2008 because they | reduced the risk exposure, or cost, that banks faced after issuing these subprime loans, and encouraged this type of lending. |
| American International Group (AIG) exacerbated the financial crises of 2007-2008 by | issuing billions of dollars of collateralized default swaps that had embedded mortgage-loan risk. |
| Taking out cash from a checking account causes M1 to | not change |
| Taking more risks when you know you're insured is known as | moral hazard |
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