Technology and Trade

question 95

Multiple Choice

Technology and trade:

• A) both destroy jobs in the short run but increase the standard of living in the long run.
• B) both create jobs in the short run but decrease the standard of living in the long run.
• C) cannot continue to increase forever.
• D) are not very similar to each other.

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Definitions:

Fiat Money

Currency without intrinsic value that is established as legal tender by government regulation.

Subprime Mortgage Market

The market for loans to borrowers with lower credit ratings, implying higher risk for lenders and typically resulting in higher interest rates.

Recession of 2001

A brief economic downturn in the United States that began in March 2001 and ended in November 2001, marked by the bursting of the dot-com bubble.

Subprime Mortgage Market

A segment of the mortgage market that caters to individuals with poor credit histories who are considered higher risk borrowers.