Which of the Following Is True

question 15

Multiple Choice

Which of the following is true?

• A)All bankrupts must first be insolvent.
• B)Bankruptcy requires the debtor to be at least $1000 in debt and have committed an act of bankruptcy.
• C)A bankrupt is never insolvent and an insolvent is never bankrupt.
• D)Bankruptcy is the procedure to wind up the creditor's affairs,paying debtor's and,in some cases,punishing the debtor for their behavior.
• E)Bankruptcy requires a court order of insolvency prior to the court order of receivership.

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Definitions:

Long Run

A period of time in economics during which all factors of production and costs are variable, allowing for full industry adjustment.

Diseconomies Of Scale

Situations where a firm's costs per unit increase as the scale of production increases, typically due to inefficiencies that arise from becoming too large.

Diminishing Returns

A principle stating that if one input in the production of a commodity is increased while other inputs are held fixed, a point will eventually be reached at which additions of the input yield progressively smaller, or diminishing, increases in output.

Diminishing Returns

A principle in economics that states as one input variable is incrementally increased, there comes a point when the rate of resultant output begins to decrease.