New growth theory claims that economic growth occurs because firms reap profits from research and add to the stock of capital

By rescuing large, troubled institutions, as happened during the 2007-2009 financial crisis and recession with institutions like AIG and General Motors, policymakers attempted to achieve financial and economic stability in the short run, but their

actions may encourage even riskier behavior on the part of these large institutions in the future if these institutions believe that they, too, will be bailed out if they get in trouble. This risk faced by policymakers is known as A) asymmetric information. B) quantitative easing. C) too-big-to-fail policy. D) moral hazard.

A good or service that is both rival and excludable is a:

A. public good. B. commons good. C. collective good. D. private good.