Discuss how wealth has changed since 1995. In particular, how did the 2007-2009 recession effect the median wealth in the United States
What will be an ideal response?
Wealth was increasing steadily until 2007. The recession caused a significant drop in wealth, in 2010 median wealth was $77,300, 8 percent lower than 15 years earlier. This is mostly due to the decrease in housing prices, on average falling 30 percent. Many households experienced a drop in home values below the value of their mortgage.
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Explain what is meant by capital flight. How would you distinguish capital flight from the normal desire of investors to diversify their portfolios by investing abroad?
What will be an ideal response?
According to the theory of cost, specialization in the use of variable resources in the short-run results initially in:
a. decreasing returns and declining average and marginal costs b. increasing returns and declining average and marginal costs c. increasing returns and increasing average and marginal costs d. decreasing returns and increasing average and marginal costs e. none of the above