Answer: The virtues of privatization have to do with the increase in the liquidity of the state and its release of debts and liabilities, which can be key in times of severe economic need. On the other hand, the intrusions of the state in economic matters are frowned upon by the defenders of the free market, since they perceive it as a source of unfair competition, artificial monopolies and the other forms of protectionism that impede the natural growth of the country´s economy.
Answer:
The correct answers are:
- B) Thousands of homes were foreclosed on
- D) Banks tightened credit restrictions again
Explanation:
B) Adjustable Mortgage Rate (ARM) changes every certain period of time. When this period ends, ARM resets to whatever the prevailing interest rate is. Many borrowers who did not anticipate this, had to pay more for their monthly mortgage. As a result, <em>banks foreclosed homes of those borrowers, who could not pay their monthly mortgage</em>.
D) To prevent (or alleviate) the real estate crash, banks tightened their criteria for potential borrowers selection. <em>Borrowers who most likely would not be able to sustainable make their payments, were left out</em>.
If a price control causes a surplus the market will become inefficient because:
1. The producer will manufacture the same amount of goods as he did previously but the surplus will increase its cost and the goods will not be sold in the market, it will result in the wastage of goods and resources if they are kept in one place for a long time.
2. The surplus will cause an equilibrium in the market in terms of supply and demand.
3. If the goods are not sold in the market for a long time, it will stop the circulation of money.
Meaning of Inefficiency :
It means the lack of ability to achieve a certain goal without wasting energy, resources and time.
It flowers at night so the precious fluid will not go to waste and evaporate. Since few animals move around during the day, it does this so that way it can attract the most pollinators (bats).
