Government regulations that deal with financial crises tend to become less effective over time.
Answer the following statement true (T) or false (F)
True
Regulations may not be appropriate in several years' time, as technology and investment vehicles change. In addition, firms may also find ways to get around these regulations. This problem is tied with the law of diminishing control.
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How does proprietary trading expose investment banks to interest-rate and credit risk?
What will be an ideal response?
One feature of the gold standard was that
a. countries had almost complete control over their own monetary policies b. surplus could cause the money supply to decrease c. slow gold production could lead to deflation d. exchange rates were unstable e. each currency was worth the same as other currencies
Because the benefits of basic research are obvious and easy to measure, it is likely that the public sector pays for the right amount and the right kinds of basic research
a. True b. False Indicate whether the statement is true or false
Which of the following is correct?
a. In unionized industries, wages are below the level that would prevail in competitive markets. b. The introduction of a union in an industry reduces the quantity of labor demanded in that industry, causes some workers in that industry to be unemployed, and reduces wages in the rest of the economy. c. There is a strong consensus among economists that unions are bad for the U.S. economy. d. All of the above are correct.