One of the most dramatic bank failures of the 1980s was the demise of Chicago's Continental Illinois Bank. Continental ran into problems because it
a. acquired deficient earth moving machinery from Caterpillar
b. acquired a series of unsound assets from Penn Square Bank of Oklahoma City
c. invested too heavily in the Brazilian economy in the 1970s
d. financed deficit spending by Archer Daniels Midland
e. sued the FDIC and failed
B
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Which of the following is among the possible reasons that the 2007-2009 financial crisis did not result in an economic depression?
A) the declaration of a bank holiday by the nation's President B) international policy coordination C) strict reliance on conventional monetary policy D) government spending restraint
Even though households do not actually purchase certain items, the government estimates and adds to the consumption component what the household would pay for these items in the marketplace. An example of this type of item is
a. a car that an individual builds from parts of old cars b. food that a farm family grows for themselves c. a pond that a household member digs by hand d. police and fire protection e. a barn that a household builds on their own property
Use the idea of interpersonal comparisons of utility to argue for a progressive income tax system where people in higher income brackets are charged higher tax rates on their extra income.
What will be an ideal response?
Since 2006, our unemployment rate
A. rose. B. fell. C. stayed about the same.