Which of the following stock market decreases is best explained by the notion of a bubble collapsing?

A. The early-1982 drop in the DJIA
B. The U.S. stock market's drop in late-2008
C. The decade of the 1970s
D. The Japanese stock market in late-1990


Answer: D

Economics

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Suppose there are only two goods: lettuce and grapes. In California, a head of lettuce sells for 50¢ and a bunch of grapes sells for $1. In Nebraska, 25¢ must be added to these absolute prices to cover transportation costs. How do these transportation costs affect the relative prices of lettuce and grapes?

a. The transportation costs do not affect the relative prices of lettuce and grapes. b. The relative prices of lettuce and grapes are both higher when transportation costs are added. c. The addition of transportation costs makes the relative price of grapes higher and the relative price of lettuce lower. d. The transportation costs raise the relative price of lettuce but lower the relative price of grapes.

Economics

One advantage of emissions permits is that they allow the government to choose the level of pollution reduction.

Answer the following statement true (T) or false (F)

Economics

Which of the following will not increase the opportunity for internal financing of capital?

A. Transparent capital markets. B. Seizing of private banks by the government. C. Saving incentives. D. Improved banking facilities.

Economics

A country runs a deficit in its current account if:?

What will be an ideal response?

Economics