Economists who believe that market economies are inherently unstable argue that the crisis of 2008 was primarily the result of
a. the expansionary policies of the Fed that caused the housing boom.
b. housing regulations that undermined sound lending practices.
c. the leveraged lending practices of banks and the fear that retarded both consumption and investment in the latter half of 2008.
d. persistently high interest rates during the decade leading up to the crisis.
C
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A quota ________ a deadweight loss and a tariff ________ a deadweight loss
A) creates; creates B) creates; does not create C) does not create; creates D) does not create; does not create E) might create; might create
Hubert's Copy Services is in perfect competition. Hubert currently charges 10 cents per page, which is the going market price. He thinks that he can increase his profit by raising the price. Is it possible? Why or why not?
What will be an ideal response?