Explain what caused the market crisis of 2008.

  1. As private firms must conduct analyses to decide whether to undertake investments, so too must governments. What is social cost-benefit analysis? How do social and private cost-benefit analysis differ from one another?
  2. work on a one-sentence summary of cost-benefit analysis.
  3. Discuss the circular flow of money and income through the four basic markets of (a) goods and services, (b) resource markets, (c) loanable fund, and (d) foreign exchange. Identify a key factor related to the flow of money and income in two of the four identified markets.
  4. Explain what caused the market crisis of 2008. Discuss how the economy reacted to the 2008 market crisis and continues to react to its impacts. Explain how you might prevent this type of problem from reoccurring. Support your response with research.


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