What is called the situation in which a debtor remains unable to pay his creditors in full ?
Correct answer: A. Bankruptcy
- A. Bankruptcy
- B. Default
- C. Total loss
- D. Crash
Explanation
Bankruptcy is the legal or financial condition in which a debtor cannot meet obligations to creditors. Default usually refers to failure to make a particular required payment, so bankruptcy better fits the broader wording.
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Individual consumers, firms and markets are examined through demand and supply, elasticity, consumer choice, production, costs, revenue and the determination of prices and output. The topic also covers market structures such as perfect competition, monopoly and oligopoly, plus market failure, externalities and the distinction between microeconomic decisions and economy-wide outcomes.
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