All of the Following Are Possible Outcomes of a Financial

question 48

Multiple Choice

All of the following are possible outcomes of a financial crisis except

• A)bank failings and disintermediation.
• B)decreases in investment.
• C)a recession.
• D)a sure competitive advantage accompanied by a comparative advantage.
• E)depreciation or devaluation of a currency.

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Definitions:

Marginal Social Cost

The total cost to society of producing an additional unit of a good, including both the private costs borne by the producer and any external costs inflicted on others.

Social Optimum

The most efficient allocation of resources in a society, achieving the best outcomes for social welfare.

Public Goods

Goods that are non-excludable and non-rivalrous, meaning they can be used by anyone without preventing others from using them as well.

Voluntary Contributions

Donations or services provided by individuals or organizations willingly without any legal or social obligation.