Econ -Struggling Micro, Macro, IV mix

Consumer surplus for a given point is

Marginal buyer’s willingness to pay

The decision on whether or not the marginal buyer will buy the good is

indifferent

Bovine Growth Hormone allows farmers to produce [%] more milk

10-20

The Fed was created in [year]

1913

The Fed consists of [#] regional banks

12

The Federal Reserve Board is in [Place]

Washington D.C.

The Fed is run by a board of governors that consists of [#] members

7

The Fed consists of [#] of regional banks

12

The board of governors is [how they are chosen]

appointed by the President and approved by the Senate

The task of controlling the money supply is the responsibility of the [committee]

Federal Open Market Committee (FOMC)

FOMC is composed of [#] the governors of the Fed + [#] regional bank presidents

7 - 5

The FOMC meets every [how long]

6 weeks

The FOMC determines what kind of policy?

Monetary policy

Discount rate is the [definition]

interest rate that the central bank charges on loans that it makes to banks

Federal funds rate is the [definition]

rate charged by banks when lending to other banks

Raising the discount rate to decrease the supply of money is a tool used by [system] and [system]

ample reserve systems and limited

Anti-trust [action] AT&T in [year]

broke up - 1984

The Sherman Anti-Trust Act was passed in [year]

1890

TALEWC are goods which are highly concentrated in the American economy

Tennis, Aircraft, Lightbulbs, Washing Machines, CIgarettes

OPEC played a role in raising oil prices from [$] in [year] to [$] in [year], and back down to [$] in [year]

3.39 - 1972 - 31.77 - 1981 - 10 - 1986[

[name] coined the term “creative destruction”

Joseph Schumpeter

A market failure is defined as a

competitive market failing to produce socially desirable outcomes

The 2 types of market failures are

externalities - when the institution of private property breaks down

Social Cost = [x] + [y]

MC + cost of treating the pollution it produces

[name] innovated the term Coase Theorem

Ronald Coase

New York became the first US city to approve congestion pricing in [date]

April 2019

California created an emissions trading system in [year]

2013

logrolling includes…

vote trading

MR= [x]/[y]

change in TR / change in Q sold

MC = [x]/[y]

change in TC / change in Q

In [year] the [name] Commission, headed by [name] found that CPI overstated inflation by [%] every year

1996 - Boskin - Michael Boskin - 1.3

The 2 reasons CPI grows more than GDP deflator is because [a] and [b]

GDP deflator reflects only the prices of domestically produced goods - the way in which they weigh the prices of different goods and services

P x Y =

Nominal GDP

If velocity is constant, prices will rise at [%] each year

3