1 A Federal Reserve Bank
a is primarily in the business of consumer lending with insured deposits
b is established with the sole purpose of holding bank reserves
c is an agency of the US government
d Is a non profit bank to make business loans
2 Why do Rolling Stones receive more income from a single concert than a school teacher may receive for a lifetime of work?
a Because Rolling Stones deserve more money
b Because demand for Rolling Stones performance is relatively elastic
c Because demand for Rolling Stones performance is relatively inelastic
d Because the economy does not favor teaching
3 The equilibrium price will rise if the
a demand falls and supply remains constant
b demand falls and supply rises
c demand and supply both rise
d demand rises and supply falls
4 In economics, all resources are scarce
a except in highly productive economies
b except where technology is a major component of production
c except where the labor force is continuously trained and re trained
d none of the above
5 John Maynard Keynes
a is the father of classical economics
b was an advocate of tax cuts to stimulate the economy
c was an advocate of government spending to boost the economy
d Both b and c