The subprime financial crisis caused a recession because of the ________ in adverse selection and moral hazard problems and the ________ in housing prices
A) increase; increase
B) increase; decrease
C) decrease; increase
D) decrease; decrease
B
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If Nike, an American corporation, produces sneakers in Thailand this would
A) count as part of U.S. GDP since it is a U.S. corporation. B) count for both Thailand's GDP and U.S. GDP. C) add to Thailand's GDP but not to U.S. GDP. D) add to neither U.S. GDP nor Thailand's GDP.
Treasury bonds are so safe (risk-free) that they often pay relatively low returns.
Answer the following statement true (T) or false (F)
"Price discrimination is the same as price differentiation." Do you agree or disagree? Why?
What will be an ideal response?
Demand is more elastic
a. in the short run than in the long run b. for necessities than for luxuries c. for food than for hamburgers d. for goods with many substitutes than for goods with only a few e. for broadly defined goods than for narrowly defined ones