Answer: C)The idea that people pursuing their own self-interest actually benefit the public at large.
Explanation: Definition: The unobservable market force that helps the demand and supply of goods in a free market to reach equilibrium automatically is the invisible hand. Description: The phrase invisible hand was introduced by Adam Smith in his book 'The Wealth of Nations
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Subprime mortgages were considered toxic assets because mortgages were bought by investment banks and they bundled them and sold them as securities is True.
<h3><u>Explanation:</u></h3>
Toxic assets are those which can be sold a very low price therefore not making any profit for the seller due to significant drop of value or because they aren’t in demand anymore and cannot be sold in the market. Subprime mortgages were one of the risky investments in the midst of the financial recession.
Subprime mortgages from lenders were loaned to borrowers with no assets, poor credit and sometimes not even an income and sold to investors with regular payments as security. This over securitization was one of the major cause that triggered the financial crisis in 2007-2009 and a decrease in housing demand.
Answer:
B. The government could reduce corporate tax rates for service and retail companies.
Explanation:
The accumulation of technological capital and knowledge are considered factors that generate increase in the productivity of firms and the economy as a whole. Thus, all policies that encourage the training of labor, as well as the technological development of firms are considered policies conducive to economic growth. Scholarships, patent incentives, and research support fit this type of incentive. However, the mere reduction of fees charged by firms cannot be considered an incentive policy from the perspective of growth theory that considers the accumulation of knowledge as the main aspect of development. Tax reduction is a simple tax policy aimed at increasing firms' competitiveness and increasing sales, but it is not associated with the process of scientific and technological development, as it does not involve the diffusion of knowledge.
The correct answer is government owned railroads
Explanation: Rail transport is carried out on railways to transport people and goods. The goods transported in this mode are of low added value and in large quantities as: ore, agricultural products, fertilizers, coal, petroleum derivatives.
