When the absence of property rights causes a market failure, the government can potentially solve the problem
a. by clearly defining property rights.
b. through regulation.
c. by supplying the good itself.
d. All of the above are correct.
d
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Refer to the table above. Net exports equal
A) -$2,800 billion. B) $2,800 billion. C) $200 billion. D) -$200 billion. E) $400 billion.
A time-series graph reveals whether there is a ________, which represents ________
A) trend in a variable; a general tendency for the variable to rise or fall B) relationship between two variables; a cross-section relationship C) trends in two variables; unrelated variables D) relationship between two variables; a trend in a variable E) cross-section relationship; a general tendency for the variables to rise or fall
Refer to the scenario above. Tom should use ________ to play this game
A) backward induction B) forward induction C) mixed strategies D) his dominated strategy
Agency problems in the subprime mortgage market included all of the following EXCEPT
A) homeowners could refinance their houses with larger loans when their homes appreciated in value. B) mortgage originators had little incentives to make sure that the mortgagee is a good credit risk. C) underwriters of mortgage-backed securities had weak incentives to make sure that the holders of the securities would be paid back. D) the evaluators of securities, the credit rating agencies, were subject to conflicts of interest.