Which of the Following Is an Example of the Bequest

question 112

Multiple Choice

Which of the following is an example of the bequest motive for saving?

• A)Pat puts $400 per month in his 401(k)retirement account.
• B)Jordan sets aside $200 per month in case she has to pay for a new roof for her house.
• C)Gerry and Terry put $2,000,000 in a trust fund that will go to their children when they die.
• D)Chris keeps $15,000 in a money market account to pay expenses in case he loses his job.

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Definitions:

Specialized Resources

Resources that are particularly suited or adapted for specific tasks or industries, leading to efficiencies in production and increased economic output.

Opportunity Cost

The cost of forgoing the next best alternative when making a decision, representing the benefits one misses out on.

Natural Monopolies

A situation in which a single firm can supply a product or service to an entire market at a lower cost than could two or more firms, leading to a market structure where only one business exists.

Service The Market

involves addressing the needs and desires of a particular market segment by offering products, services, or solutions that cater specifically to that segment's demands.