Which of the Following Is a Positive Economicstatement

question 60

Multiple Choice

Which of the following is a positive economicstatement?

• A)Shortages in the kidney trade are a necessary phenomenon.
• B)Animal rights activists are to blame for the high prices of real furs.
• C)We should encourage the importation of kidneys from the less-developed countries.
• D)A government-imposed price of zero for kidneys helps create a black market in kidneys.(True Answer
• )Correct

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Definitions:

Housing Bust

A rapid decline in the market prices of residential properties, often following a period of unsustainable growth or speculation, leading to widespread financial and economic distress.

Fannie Mae

A government-sponsored enterprise (GSE) established to expand the secondary mortgage market by making mortgages more accessible to low- and middle-income borrowers.

Freddie Mac

A government-sponsored enterprise (GSE) focused on expanding the secondary mortgage market by buying loans from lenders, thereby providing liquidity, stability, and affordability in the housing market.

Secondary Mortgage Markets

Markets where lenders and investors buy and sell existing mortgages or mortgage-backed securities, providing liquidity and capital to the primary mortgage market.