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Assignment:
Your producer has asked you to a story on The Federal Reserve. There is a lot of confusion in the American public about the functions and role of the Fed. You and your producer believe that you have a duty to explain what the Federal Reserve Banking system is and how it influences macroeconomic outcomes.
Your report will focus primarily on the Fed's role in monetary policy. Remember, your report needs to be easily understood by the common man or woman, Break down the three tools of monetary policy with a special emphasis on Open Markets Operation. Offer clear and concise explanations and definitions of terms that may be unfamiliar to your audience.
In planning the story, you will also need to give it some context by highlighting the role The Fed most recently played in the Recession of 2008-09 and continues to play in the economic recovery. You can also feature an interview with a Fed official (Benjamin Bernanke), an economist, and/or a man on the street interview. Your job is to unravel the mystery of The Fed!
Question: Explain why the free rider problem makes it difficult for perfectly competitive markets to provide the Pareto efficient level of a public good.
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Read the rules of the game, the overview and the almanac for the Development Game "Settlers of Catan"
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