Many banks in the U.S. failed in the 1930s, not because they were poorly managed, but because they could not survive the panicky withdrawal of funds by their depositors

Unintended costs that are imposed in third parties as a result of an economic activity are called:

a. marginal costs. b. direct costs. c. negative externalities. d. positive externalities. e. positive costs.

Authoritarian political regimes

a. never produce sound economic institutions, due to corruption. b. have produced movement toward sound economic institutions in Chile, South Korea and several other nations. c. will generally produce sound economic institutions and policies. d. are necessary for the emergence of sound institutions, but not for their continued operation.