What happens in a market economy?

A. The government plans which products will be made and what to charge for them.

B. People make only what they need to survive and sell or trade with each other.

C. Businesses offer a wide variety of goods and services to people.

D. Businesses decide which products to sell and which prices to charge.

The graph shows the price of a good compared to the quantity demanded and the quantity supplied. on this graph, the bottom horizontal line represents an ineffective price floor set above equilibrium. an effective price floor set below equilibrium. an ineffective price ceiling set above equilibrium. an effective price ceiling set below equilibrium.

You are serving on a jury. a plaintiff is suing the city for injuries sustained after falling down an uncovered manhole. in the trial, doctors testified that it will be 5 years before the plaintiff is able to return to work. the jury has already decided in favor of the plaintiff, and has decided to grant the plaintiff an award to cover the following items: a. recovery of 2 years of back-pay ($34,000 for two years ago, and $36,000 for last year, which ends today). assume that it is december 31 and that all salary is received at year end. this recovery should include the time value of money. b. the present value of 5 years of future salary. assume that the plaintiff's salary would increase at a rate of 3 percent per year. c. $100,000 for pain and suffering. d. $20,000 for court costs. assume an interest rate of 7 percent. what should be the size of the settlement?

1. the responsibilities of the u.s. federal reserve system include overseeing the banking system and regulating the quantity of money in the economy setting the level of real interest rates working with congress to devise a financial plan for the country and execute the president's orders calculating and reporting the unemployment rate 2. to increase the supply of money when the economy is weak, the fed closes banks reduces inflation sells bonds buys bonds 3. the federal funds rate is the short-term interest rate that banks charge their best customers when borrowing banks earn on savings accounts with the fed banks charge each other when borrowing or lending to each other the fed charges banks when borrowing 4. when the fed increases the money supply and consequently lowers interest rates, the value of the dollar will rise by more in the market for foreign exchange, all else equal will fall, all else equal is not impacted by fed policy will rise, all else equal