When Private Lenders Refused to Lend to the Greek Government

question 128

Multiple Choice

When private lenders refused to lend to the Greek government in 2009, other European countries:

• A)also refused to lend money to Greece.
• B)forced Greece to abandon the euro and return to the drachma.
• C)provided emergency loans to Greece but demanded harsh budget cuts in return.
• D)forced Greece to leave the European Union.

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Definitions:

Standby Customers

Customers who are available to purchase or subscribe to a service on an as-needed basis, often used in context with utilities or telecommunications.

Profit

The financial gain obtained when the revenue earned from business activities exceeds the expenses, costs, and taxes involved in sustaining the activity.

Economies of Scale

The cost advantage that arises with increased output of a product, leading to a reduction in the per-unit cost of production.

Average Total Cost

The total cost of production (fixed and variable costs combined) divided by the number of units produced, indicating the cost per unit of output.