Because of the free rider problem
a. private solutions to externality problems are often needed
b. side payments are needed in order to achieve Pareto improvements
c. governmental solutions to externality problems are often needed
d. side payments are needed in order to solve externality problems
e. private solutions to externality problems are common
C
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Banks who held mortgage-backed securities "took a bath" during the financial crisis of 2007-2009 due to:
A) rising yields in secondary markets which led to a decline in the price of mortgage-backed securities. B) falling yields in secondary markets which led to a decline in the price of mortgage-backed securities. C) their inability to issue new mortgages. D) more rapid pre-payment of mortgages.
Foreign aid represents
A. less than a billion dollars in spending. B. no longer exists. C. is more than we spend on education loans, grants and work study combined. D. just over 30 billion dollars.