What caused the credit crisis of 2008?
A. The sub-prime mortgage mess.
B. The sub-prime mortgage mess along with existing huge leveraged bets that prices of real estate made by investment banks and other firms not regulated by the Fed.
C. Home buyers misrepresentation of repayment capacity.
D. A large number of home buyers losing their jobs.
B. The sub-prime mortgage mess along with existing huge leveraged bets that prices of real estate made by investment banks and other firms not regulated by the Fed.
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The proper economic method of selecting a sentence length would be to
A. compare the average cost of crime being perpetrated by the average offender if released a year earlier with the average incarceration costs for that shorter sentence. B. compare the total cost of crime being perpetrated by the offender if released a year earlier with the incarceration costs for that shorter sentence. C. poll pro bono defense attorneys and follow their recommendation. D. compare the reduction in the total cost of (marginal cost) crime being perpetrated by the offender if released a year earlier with the reduction in incarceration costs (marginal benefit) for that shorter sentence.
According to the above table, if these two countries trade
A. the United States should specialize in tablets and Mexico should specialize in TVs. B. we cannot tell which country should specialize in which good without knowing the amount of labor utilized in each country. C. the United States should specialize in both tablets and TVs. D. Mexico should specialize in tablets and the United States in TVs.
Refer to the information provided in Figure 2.4 below to answer the question(s) that follow.
Figure 2.4According to Figure 2.4, as the economy moves from Point A to Point E, the opportunity cost of motorcycles, measured in terms of hybrid cars
A. remains constant. B. decreases. C. initially increases, then decreases. D. increases.
Suppose a monopoly produces film and cameras. Consumers demand pictures, which require film and one camera
Two different types of consumers have the following demand for film, qA = 100 - 10p and qB = 80 - 10p. The monopoly cannot price discriminate in the market for film or the market for cameras, but it can bundle the products. The monopoly produces film at a constant marginal cost of $1 per roll. What price will the monopoly set for film and for cameras?