At some point during the financial crisis of 2008–2009, people with uninsured deposits at financial institutions withdrew money from their accounts at those institutions. This phenomenon characterized which element of the financial crisis?
a. the decline in confidence in financial institutions
b. the credit crunch
c. the economic downturn
d. the decline in asset prices
a
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We cannot predict the effect on the equilibrium quantity, but know that the market clearing price will increase when
A) supply decreases and at the same time demand increases. B) supply increases and demand increases simultaneously. C) supply and demand decreases simultaneously. D) supply and demand increases simultaneously.
When a firm's marginal productivity of an input eventually declines as the quantity of input increases, then the production is experiencing
a. Diminishing returns to scale b. Diminishing marginal product c. Increasing returns to scale d. Increasing marginal product
The “yardstick” people use to post prices and record debts is called
a. a unit of account. b. liquidity. c. a medium of exchange. d. a store of value.
If the seller knows more about the good than the buyer knows, there exists:
A. an externality. B. asymmetric information. C. moral hazard. D. a public goods problem.