Externalities require government intervention when
A. violence will result between disputing parties.
B. there are only a few sellers in the market.
C. property rights are not clearly established.
D. the government imposes sales taxes.
E. all of these answer options are correct.
C. property rights are not clearly established.
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The largest component of national income is
A) compensation of employees. B) rental income. C) corporate profits. D) proprietors' income.
An example of a public good is
A) national defense services. B) a Ford truck. C) a loaf of bread. D) a home computer.
The percent by which import prices rise when the home currency depreciates by 1% is the degree of
A) pass-forward from exchange rates to import prices. B) pass-through from exchange rates to import prices. C) pass-on from exchange rates to import prices. D) roll-forward from exchange rates to import prices. E) pass-beyond from exchange rates to import prices.
Which of the following was a contributing factor to the rising default and foreclosure rates beginning in the latter half of 2006?
a. the increasing share of 30-year, fixed rate loans as a share of outstanding mortgages b. the rigid standards of rating agencies, such as Moody's and Standard and Poors, which limited the development of mortgage-backed securities c. the price-stability policies of the Federal Reserve during 1998-2008 d. the erosion of lending standards during the preceding decade