Understanding the Bubble Burst

The video discusses the concept of economic bubbles, focusing on how they form and eventually burst.

What is a bubble burst in economic terms?

• A steady rise in market prices

• A rapid drop in market prices after a peak

• A gradual decline in market prices

• A sudden increase in market prices

Which of the following is a common factor leading to a bubble burst?

• Low market volatility

• Stable economic growth

• Excessive speculation

• High investor confidence

What typically happens to investor confidence after a bubble burst?

• It decreases sharply

• It remains unchanged

• It increases significantly

• It fluctuates unpredictably

How does a bubble burst affect the overall economy?

• It causes economic growth

• It leads to economic stability

• It has no impact on the economy

• It results in economic downturn

Which of the following is NOT a consequence of a bubble burst?

• Increased market confidence

• Economic recession

• Market correction

• Financial losses