Describe the three major units of the Federal Reserve System and their functions.
What will be an ideal response?
First, the Federal Reserve is overseen by the Board of Governors. This Board is responsible for control of the supply of money and the banking system. The President appoints the seven members of the Board. Second, there are twelve regional Federal Reserve Banks. They serve as central banks, quasi-public banks, and bankers’ banks. Third, the Federal Open Market Committee (FOMC) helps the Board by establishing policy over the buying and selling of government securities.
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Which of the following statements is true?
a. A monopsony is the only employer of a factor of production. b. A monopsony will pay workers a higher wage and employ fewer workers than a competitive labor market. c. A monopsony has a marginal factor cost curve which lies below its supply curve of labor. d. Unions are becoming a greater influence in American labor markets. e. All of these.
If there is both a decrease in immigration and an increase in workers' non-wage incomes, a. the supply of labor will increase
b. the supply of labor will decrease. c. the supply of labor will remain unchanged. d. the effect on the supply of labor will be indeterminate.