Mortgage backed securities had a role in the 2008 financial crisis
Indicate whether the statement is true or false
True
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Why do economists abstract, and is it appropriate?
What will be an ideal response?
Costa Rica is a leading exporter of bananas. What explains the comparative advantage of this country in banana production?
A) investment by multinational firms such as Chiquita Brands International and the Dole Food Company B) climate and soil conditions in Costa Rica which are well-suited for banana production C) positive externalities D) a large supply of unskilled labor
Holding demand constant, an increase in supply leads to
A) lower prices and higher quantity demanded. B) lower prices and lower quantity demanded. C) higher prices and higher quantity demanded. D) higher prices and lower quantity demanded.
Which of the following is the preferred strategy for the government to follow to remedy the inefficient allocation of resources associated with monopolies?
a. preventing mergers through antitrust laws b. regulating the prices that monopolies can charge c. doing nothing d. None of the above strategies is preferred. Each is a viable strategy.