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Federal Reserve Board

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Identify four functions of the Federal Reserve Board and explain how each of them is important.

Financial notes from the Confederate States of America.  Was this money?  

Why and why not? 

How does Income and wealth distribution impact GDP?

  Why do many economists express concern about the current income and wealth distribution in the United States?  Explain Opportunity Cost.  How does Opportunity Cost relate to the study of Economics?

Why is a return to the gold standard a bad idea?  

If the goal is to remove the threat of inflation from Federal Reserve action what is an alternative approach that does not have the problems of the gold standard. Many economists argue that our drug use laws are terribly inefficient and should be modified to eliminate the illegal aspect for use.  

Explain what economists are thinking.  (What are the costs and benefits from our drug laws? Oligopoly tends toward “rent seeking” behavior.  Explain “rent seeking behavior.”  Explain in detail why “rent seeking” behavior is bad for an economy. Natural Monopoly can be good for an economy.  

Explain why it can be good.  Next, explain how the negative side to monopoly can be controlled with a natural monopoly. Why is income distribution a market failure? 

 Note well that this is a multi-faceted question and requires a substantial set of arguments. What do you expect the result to be from our trade tariff battle with China, Canada, Mexico and the European Union?


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