Which of the Following Is a False Statement About the 2007-2008

question 11

Multiple Choice

Which of the following is a false statement about the 2007-2008 recession?

• A) Many consumers shifted to lower priced products and brands.
• B) Consumer spending in multiple business categories.
• C) Consumer spent less on the Internet.
• D) Unemployment rates rose.
• E) The business sector found that it had excess production capacity.

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Definitions:

Effective Market

A market scenario where prices reflect all available information, allowing for efficient allocation of resources and securities pricing.

Government Control

The involvement and regulation by governmental bodies in certain areas of the economy or specific industries to enforce policies and laws.

Consumer Surplus

The disparity between the total payment consumers are willing and have the ability to make for a good or service, and the payment they indeed make.

Consumer Surplus

The divergence between anticipated consumer expenditure on a good or service and the actual expenditure.