There Are Many Reasons Why There Was a Financial Crisis

question 1

Multiple Choice

There are many reasons why there was a financial crisis in 2007.The most significant event closely associated with this crisis is:

• A)the stock market crash
• B)the real estate bubble
• C)government overspending
• D)the use of financial hedging

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Definitions:

Export

The selling of goods or services produced in one country to buyers in another country.

Autarky Price

The autarky price is the price of a good in a country that is completely self-sufficient and does not engage in international trade for that good.

Total Surplus

The sum of consumer surplus and producer surplus in a market, a measure of the overall economic benefit to society.

Autarky

An economic system or condition of self-sufficiency where a country or entity does not engage in international trade, but relies on its own resources.