What Was the Primary Lesson Learned from the Panic of 1907

question 22

Multiple Choice

What was the primary lesson learned from the Panic of 1907?

• A)The importance of wealthy families in the banking industry
• B)The need to eliminate federal oversight of banks and return oversight to the level of states
• C)The need  for a central bank and laws and regulations for banking
• D)The need for deregulation of financial markets and tighter control of monopolies

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Definitions:

Consumer Surplus

It is the difference between the total amount that consumers are willing and able to pay for a good or service and the total amount that they actually pay.

Market Equilibrium

The state in which market supply and demand balance each other, resulting in stable prices.

Producer Surplus

The difference between the amount a producer is willing to accept for a product versus what they actually receive.

Equilibrium Price

The price at which the quantity of a good demanded by consumers equals the quantity supplied by producers.