As more people in a country started hoarding grains in fear of a shortage, a shortage actually occurred. This is an example of a(n) ________
A) positive externality
B) information cascade
C) moral hazard
D) adverse selection
B
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Cap-and-trade refers to
A) capping emissions and issuing tradeable emissions permits. B) capping revenue from selling emissions permits. C) countries trading fishing rights in international waters. D) capping taxes on firms that engage in international trade. E) capping the benefits gained from pollution controls.
With ________ finance, borrowers obtain funds from lenders by selling them securities in the financial markets
A) active B) determined C) indirect D) direct
The following include several reasons that government might give for using a tariff on imports? Which is not valid, in the sense that the effect described will not happen.
a. To raise government revenue. b. To help consumers. c. To raise incomes of producers. d. To respond to political pressures from import competing industries. e. To increase national welfare at the expense of foreigners.
Based on the graph showing how the subprime share of home mortgages grew rapidly before the big decline, at the peak of the use of subprime loans in 2005, the gap between the share of subprime mortgages and adjustable mortgage rates was ______ the typical historical difference.
a. perfectly in line with
b. slightly smaller than
c. slightly greater than
d. dramatically greater than