According to the Text, Which Is a Benefit of Utilizing

question 76

Multiple Choice

According to the text, which is a benefit of utilizing a 401(k) plan or individual retirement account (IRA) to save for retirement?

• A) Using those accounts is more cost-effective than Social Security.
• B) Those accounts are a safe way to save up a guaranteed amount of money.
• C) Such accounts are simple to set up and have no limits on contributions.
• D) Those accounts have various tax incentives for saving money.

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Definitions:

Economic Losses

The difference when total costs, including both explicit and implicit costs, exceed total revenues, indicating that resources could be better employed elsewhere.

Economic Profits

The difference between total revenue and total costs, including both explicit and implicit costs, representing excess returns over the firm's opportunity costs.

Purely Competitive Market

A trading environment with a large number of consumers and providers, barrier-free entrance and departure, and a standardized product.

Long-run Equilibrium

A state where all factors of production in an economy are utilized efficiently, market supply equals demand, and no economic forces are pushing for change.