Finances of Many State and Local Government Pension Programs Are

question 3

Multiple Choice

Finances of many state and local government pension programs are a problem because

• A) Pension managers used an interest or discount rate that was too low when determining the amount of money to be set aside each year to cover future benefits.
• B) State and local governments improperly diverted public revenues into pension funds to garner political support from government employees.
• C) Many state and local governments made inadequate contributions into the pension funds to support promised future benefits.
• D) States assumed the obligations of local pension programs.

Evaluate the effectiveness of real estate as a hedge against inflation.

Recognize the importance and challenges of diversification in real estate investment.

Understand legal structures and liability issues in real estate investment partnerships.

Acknowledge the role of collectibles and precious metals in investment portfolios.

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Definitions:

Perfectly Competitive Firm

A theoretical business entity in an idealized market structure where no single firm can influence the price of its product, due to the presence of numerous sellers offering perfectly substitutable products.

Non-Price Competition

A market strategy where businesses attempt to attract customers through methods other than lowering prices, such as product differentiation and marketing.

Barriers

Obstacles or impediments that prevent or hinder access, movement, or progress within a particular area or context.

Perfect Competition

A market structure characterized by an infinite number of small firms, identical products, no barriers to entry or exit, and perfect information among buyers and sellers.