The strong demand for housing, rising housing prices, and a construction boom from 2000 to 2005 were a result of
a. market forces that were eventually cut short by the stock market crash of 2008.
b. policy changes that had positive initial effects, but negative long-term effects.
c. tightened mortgage lending standards that reduced the risks of obtaining a home mortgage.
d. the rising interest rates of that period, which increased the demand for housing.
B
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Every time you go to the grocery store, you try to wait in the shortest line. But the lines always seem to be roughly the same length. Why?
A. The cashiers work at the same speed. B. Other people are trying to choose the shortest line too. C. Random chance equalizes the length of the lines. D. The cashiers do not have an incentive to work faster.
A free rider problem is a problem associated with
A) public goods. B) common resources. C) private goods. D) natural monopolies.
At the local park there is a playground that anyone may use. There is rarely anyone using the playground, so children who use the playground receive full enjoyment from its use. The playground is
a. rival in consumption and is excludable. b. not rival in consumption, but is excludable. c. rival in consumption, but is not excludable. d. not rival in consumption nor is it excludable.
What should be the priority of politicians? Should they be mainly concerned with conveying and voting the wishes of the people that they represent? Should they be mainly concerned with standing for positions that they feel strongly about? Should they be mainly concerned with securing reelection?
What will be an ideal response?