Financial Market decisions are based on _____choices
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The following questions are based on the crash of the stock market in 2008.
1) Briefly explain what the economic conditions were like in the United States prior to the crash of the market in 2008.
2) Explain the events that brought about the crash of the stock market in 2008.
3) What did the U.S. government do after the decline of so many large financial institutions?
4) Explain the role of stop-loss orders in the crash? How does human psychology influence financial decisions?
A principal feature of a command economy is that:
a. production decisions are made by profit-maximizing firms.
b. there is a central planning board at the top, which transmits economic decisions down to the various producing and consuming units below.
c. consumers are allowed to determine what is produced based on their demand for goods and services.
d. regulatory agencies constrain the most egregious forms of market power in a market system allocation.
Β
Evaluate the accuracy of the following comment.
"Even if a market is inefficient, resource allocation decisions based upon prices determined in this market will be efficient."