If you returned a 5 Federal Reserve note to the Fed, you could receive:

If you returned a 5 Federal Reserve note to the Fed, you could receive:
 a. 5 in silver.
 b. 5 in gold.
 c. 5 one-dollar bills.
 d. 10 one-dollar bills.
  e. a small gold bar.

QUESTION 2

Which of the following best describes social benefits?
 a. The external benefits to other members of society, ignoring the private benefits to market participants.
  b. The sum of external benefits and private benefits.
  c. External benefits minus benefits.
  d. Private benefits minus external benefits.

QUESTION 3

The consumption function assumes that:
 a. only disposable income affects consumption.
 b. only the price level affects consumption.
 c. many factors other than disposable income affect consumption, and each is allowed to vary along the consumption function.
  d. factors other than disposable income affect consumption, but those are held constant along the consumption function.
  e. only consumer expectations affect consumption.

QUESTION 4

Which of the following is not true of Federal Reserve notes?
 a. They are fiat money.
 b. They are a liability of the Fed.
 c. They are redeemable for other Federal Reserve notes.
  d. They are redeemable for gold.
 e. They are counted as currency in the money supply

QUESTION 5

You are the mayor of your home town, and one day you arrive at city hall to find angry voters demonstrating against you. They are mad because your office created a garbage-collection monopoly by awarding only one company a permit to collect garbage in your town. The voters claim that the company is overcharging and providing poor service. They want you to do something that will lower rates and improve service. You call your staff economist, who presents evidence that there are substantial economies of scale to garbage collection. What are your options if you are interested in efficiency?