Which of the following events will help to burst an asset price bubble?
A) Speculative demand for the asset quickly declines.
B) Speculative demand for the asset quickly increases.
C) New information leads buyers to doubt that prices will continue to increase in the future.
D) A and C are correct
D
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"Universal banking" can lower the risk of participating financial institutions if
A) there is high correlation in the returns of the permitted activities. B) there is low correlation in the returns of the permitted activities. C) there are firewalls between all the permitted activities. D) none of the customers of the institution are federally insured.
Disposable income is not:
A. total income minus taxes. B. what consumers base their buying decisions on. C. the amount consumers have to spend on goods and services. D. income before tax.
For a consumer to maximize utility, he will choose the
a. point where the slope of the budget line equals the slope of the indifference curve. b. any point where the budget line and indifference curve intersect. c. point where he gets the most of the good he prefers most. d. point where the marginal rate of substitution is greatest. e. the point where marginal utility is zero for both goods
________ is maximized when the marginal cost of production equals the marginal benefit to consumers
a. Efficiency b. Productivity c. Social welfare d. Economic profit