According to Pigou, the socially optimal quantity
a. is QO
b. is QE
c. eliminates area A+B+C+D.
d. creates area E.
a. is QO
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The first step in gradualism is
a. the privatization of larger industrial sectors b. the phasing out of money-losing enterprises c. large industrial enterprises quickly finding market-clearing prices d. the thriving of small-scale capitalism e. state-owned enterprises running more like businesses to maximize profit
Financial institutions are not very heavily leveraged, to prevent risk to the banking system
a. True b. False Indicate whether the statement is true or false
Which of the following was a contributing factor to the housing boom and bust and the financial crisis of 2008?
a. An increase in the share of loans to sub-prime borrowers. b. An increase in the share of loans extended to borrowers making only a small down payment. c. An increase in adjustable-rate mortgages (ARMs) as a share of the total. d. All of the above.
Compared to the United States, over the last three decades unemployment in Western Europe is ________ and the rate of job creation is ________.
A. lower; slower B. higher; slower C. lower; faster D. higher; faster