In the financial crisis of 2008, which of the following were not among the consequences of high leverage in the banking industry?
a. Less investment was undertaken than would otherwise have been the case
b. Less consumption spending took place than would otherwise have been the case.
c. Unemployment was lower than it would otherwise have been.
d. Real GDP was lower than it otherwise would have been
c
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A price floor in a perfectly competitive market
a. creates more harm for sellers than gain for buyers b. is effective only it is set at the equilibrium price c. is a Pareto improvement d. can turn an inefficient outcome into an efficient outcome e. creates more harm for buyers than gain for sellers
The British economist A. C. Pigou did not do which of the following?
A. Write The Economics of Welfare in 1911 B. Offer an explanation of the market economy’s poor environmental performance C. Outline an approach to environmental policy still in favor with economists today D. Suggest that increases in the human population would ultimately lead to the collapse of renewable resources