What Development Led to the Great Recession

question 7

Multiple Choice

What development led to the Great Recession?

• A) the collapse of a real estate bubble in the United States
• B) the European transition to the euro
• C) the imposition of austerity policies by the EU
• D) deindustrialization in Britain and France
• E) a flood of immigrants into Europe from Africa and the Middle East

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Definitions:

External Benefits

Benefits resulting from a transaction that affect parties not directly involved in the transaction, often leading to positive outcomes for society.

External Costs

Costs of a transaction or activity that affect third parties who did not choose to incur that cost, often seen in environmental pollution.

Competitive Market

A market structure characterized by a large number of buyers and sellers, free entry and exit, and a product for which there are many substitutes.

External Benefit

A benefit that people other than the consumer or producer enjoy, resulting from a transaction or activity.