Which Event Triggered the Recent Recession That Began in 2008

question 54

Multiple Choice

Which event triggered the recent recession that began in 2008?

• A) Consumers were unwilling to purchase electronic equipment.
• B) Businesses were unable to make loan payments.
• C) Homeowners were unable to make mortgage payments.
• D) Renters were unable to find available housing.

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Definitions:

Marginal Cost

The additional cost incurred from producing one more unit of a good or service.

Competitive Market

A market structure characterized by many buyers and sellers, where no single entity has the power to influence market prices.

Profit

Profit is the financial benefit realized when the amount of revenue gained from a business activity exceeds the expenses, costs, and taxes involved in maintaining the activity.

Short-Run Equilibrium

A situation in a market where demand equals supply, resulting in a stable price level, but which may not reflect long-term market dynamics.