"As Part of the Financial Crisis Bailout Plan in 2008

question 369

Multiple Choice

"As part of the financial crisis bailout plan in 2008, the Federal Reserve should not bail out banks that made risky loans." This is an example of

• A) a positive statement.
• B) the Federal Reserve taking actions that are not at the margin.
• C) opportunity costs.
• D) a normative statement.

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Definitions:

Low In Empathy

Describes individuals or situations where there is a lack of ability to understand and share the feelings of another.

Aversive Racism

Conflicting, often nonconscious, negative feelings about African Americans that Americans may have, even though most do in fact support principles of racial equality and do not knowingly discriminate.

Social Exchange Theory

A theoretical perspective that explains social change and stability as a process of negotiated exchanges between parties.

Kin Selection

A theory in evolutionary biology that proposes an organism will behave in a manner that increases the genetic success of its relatives, even at a cost to its own survival and reproduction.