The collapse of stock prices in September of 2008 was
A. totally irrational and unjustified by any fundamental determinants of stock values.
B. the result of an elaborate conspiracy by greedy manipulators to ruin the Big Three automakers.
C. an inescapable consequence of the rebound of 2006-2007.
D. largely due to the sharply increased uncertainty regarding the strategically-critical financial sector.
Answer: D
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What occurs if a price floor is set above the equilibrium price? What occurs if a price ceiling is set below the equilibrium price?
What will be an ideal response?
The concept of economic rent is associated with the British economist David Ricardo (1772-1823). Ricardo analyzed economic rent for land. Which of the following is FALSE with respect to determining land rent?
A) The supply curve for land is vertical (perfectly inelastic). B) Rent is payment for a resource above its opportunity cost. C) Payment for a resource below its opportunity cost is rent. D) Ricardo assumed the quantity of land in a country is fixed.
The investment when a firm runs part of its operation abroad or invests in another company abroad is called:
A. portfolio investment. B. import investment. C. export investment. D. foreign direct investment.
A common resource is:
A. not rival in consumption and not excludable. B. rival in consumption, but not excludable. C. rival in consumption and excludable. D. not rival in consumption, but excludable.