Which of the following was an underlying cause of the economic crisis of 2008?
a. a failure of government to impose regulations on Fannie Mae, Freddie Mac, and other mortgage lenders
b. the imposition of government regulations on Fannie Mae, Freddie Mac, and other lending institutions that eroded the conventional lending standards in place prior to the mid-1990s
c. greedy mortgage lenders who extended risky loans to sub-prime borrowers even though the regulators were trying to limit these loans
d. federal housing regulations that made it difficult for Fannie Mae, Freddie Mac, and other lending institutions to obtain sufficient loanable funds for the finance of housing construction
B
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The value of a virtual chat room to an individual user increased as more people started using it. This is an example of a(n) ________
A) moral hazard B) adverse selection C) network externality D) negative externality
Which researcher argues that the slave system and its enforcement mechanisms prevented slave individualism from emerging within the system itself?
(a) Robert Fogel (b) Stanley Engerman (c) Stanley Elkins (d) Kenneth Stampp
It is more likely at lower tax rates than higher tax rates that the:
A. quantity effect will outweigh the price effect. B. quantity effect will outweigh the income effect. C. price effect will outweigh the quantity effect. D. income effect will outweigh the price effect.
An economy could produce above its potential GDP for a short period of time by
a. reducing the size of the labor force. b. increasing the price of final goods and services. c. adding extra shifts of work, such as overtime or night shifts. d. increasing the money supply.