Refer to Figure 4-1. If the market price is $2.50, what is the consumer surplus on the third ice cream cone?

One of the major political developments of the past several decades is the growing size and economic/monetary integration of the European Union. What effect do you think this will have on international trade between countries?

What will be an ideal response?

Which of the following is a reason that the Fed does not traditionally attempt to limit asset price bubbles?

a. The Fed's policies cannot be targeted at only one sector of the economy. b. Price changes for one asset or one industry cannot have a substantial impact on the entire economy. c. The FDIC rather than the Fed is responsible for recognizing bad lending practices. d. all of the above