When Filing for Personal Bankruptcy

question 196

Multiple Choice

When filing for personal bankruptcy. A person is more likely to file for Chapter 13 rather than Chapter 7 if the debtor's income is:

• A) higher than the state average income
• B) lower than the state average income
• C) not related to the choice of kind of bankruptcy chosen
• D) expected to decline in future years
• E) none of the other choices

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Definitions:

Opportunity Cost

The forgone value of what you give up when you make a choice.

Total Output

The aggregate quantity of goods and services produced within an economy over a specific period, reflecting the economy's overall productivity.

Comparative Advantage

The ability of an entity to produce a good or offer a service at a lower opportunity cost than another.

Absolute Advantage

The ability of a country to produce a good at a lower cost than its trading partners.