Why did some economists and policymakers think ratings agencies had a conflict of interest leading up to the Financial Crisis of 2007-2009?
What will be an ideal response?
Since ratings agencies earn income by charging firms for their services, they may have an incentive to maintain higher ratings than justified in order to keep a firm's business.
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Calculate the new real GDP and explain why real GDP increases by more than $5 billion
What will be an ideal response?
If a production possibilities frontier is bowed out (concave to the origin), then production occurs under conditions of
A) constant opportunity costs. B) increasing opportunity costs. C) decreasing opportunity costs. D) infinite opportunity costs. E) uncertain opportunity costs.
In the above figure, which wage rate yields the highest union employment?
A) W1 B) W2 C) W3 D) W2 - W1
Medicaid is an example of a cash assistance poverty program
a. True b. False Indicate whether the statement is true or false