These credit default swaps were also turned into other securities
What will be an ideal response?
that essentially allowed traders to bet huge amounts of money on whether the values of mortgage securities would go up or down
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A ________ describes the possible moves in a game in sequence and lists the payoffs to each possible combination of moves.
A. decision tree B. payoff matrix C. multi-period game D. game graph
If an industrial union would strike if it does not receive a particular wage rate, then the supply curve of labor in this market
a. is horizontal at that particular wage rate until it intersects the original supply of labor curve b. is vertical at that particular wage rate until it intersects the original supply of labor curve c. shifts to the left d. disappears e. slopes downward
The term "natural rate of unemployment" refers to the level of unemployment that occurs when: a. the economy is healthy
b. the economy faces a recession. c. workers in an economy move between jobs. d. there are fundamental changes in the nature of an economy.
Suppose that a negative externality is created by the production of good X. Which of the following statements is correct?
a. The social cost of producing good X includes the private cost plus the cost to bystanders of the externality. b. The increased social cost can be graphed as a decrease in demand. c. The market equilibrium quantity will be the socially optimal quantity as long as the government does not interfere. d. Both a and b are correct.