The first element of a financial crisis is
a. inflation.
b. a decline in confidence in financial institutions.
c. a relaxation of rules and regulations that pertain to the financial system.
d. a large decline in some asset prices.
d
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Which of these statements is not true of both external cost and external benefit situations? a. They both can lead to market failure
b. They both cause welfare costs. c. They both make it possible for government intervention to lead to more efficient results. d. All of the above are true.
An ideal voting system must not have:
A. a person who has the power to single-handedly enact his or her own preferences. B. a person who can convince everyone to vote for his or her preferences, and not their own. C. a one-dimensional issue being voted on. D. transitivity of preferences