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LEGAL RESERVES: The total amount of vault cash or Federal Reserve deposits of a bank. These are the only bank assets that can be used legally to satisfy reserve requirements.

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Lesson 1: Economic Basics | Unit 5: Policies Page: 15 of 18

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Markets do a reasonable, but not make perfect, job of pursuing the five economic goals.

Market Imperfections:

  • Instability: Markets can cause instability in the macroeconomy, preventing growth, stability, and full employment.
  • Inefficiency: Market imperfections can prevent the economy from efficiently using resources.
  • Equity: The market generated distribution of income and wealth might not be desired by society.

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OPPORTUNITY COST, PRODUCTION POSSIBILITIES

The production possibilities analysis, which is the alternative combinations of two goods that an economy can produce with given resources and technology, can be used to illustrate opportunity cost--the highest valued alternative foregone in the pursuit of an activity.

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APLS

BROWN PRAGMATOX
[What's This?]

Today, you are likely to spend a great deal of time browsing about a thrift store wanting to buy either a large, stuffed kitty cat or a cross-cut paper shredder. Be on the lookout for a thesaurus filled with typos.
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This isn't me! What am I?

The portrait on the quarter is a more accurate likeness of George Washington than that on the dollar bill.
"The greatest things ever done on Earth have been done little by little. "

-- William Jennings Bryan

ACCR
Annual Cost of Capital Recovery
A PEDestrian's Guide
Xtra Credit
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