The practice of the ECB and national central banks of preventing massive bank failures after the financial crisis of 2008 had what effect on the affected economies?
A) Prevention of bank failures greatly reduced the pain of the crisis for taxpayers.
B) Prevention of bank failures ended up not saving most banks anyway.
C) Banks resisted the takeover by the ECB and refused to make additional credit available.
D) Governments financed the bailouts by issuing more domestic debt, which caused extreme fiscal problems.
Ans: D) Governments financed the bailouts by issuing more domestic debt, which caused extreme fiscal problems.
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Supply-side economists advocate
A. A reduction in the incentives to save so that more income will be spent. B. An increase in transfer payments. C. The use of minimum wage laws to guarantee fair wages for workers. D. A reduction in structural unemployment through worker training.
Whenever technology advances, an economy can produce more output with
A. Current resources. B. No resources. C. Fewer resources. D. More resources.
The most common type of investment in human capital is
A) having more children per family. B) the migration of labor in search of better jobs. C) expanded years of schooling. D) improved health care and maintenance.
Refer to the information provided in Figure 2.4 below to answer the question(s) that follow.
Figure 2.4According to Figure 2.4, Point E necessarily represents
A. only motorcycles being produced. B. overallocation of resources. C. an impossible production point. D. technological advancement.