A Trust That Is Established in a Person's Will and That

question 50

Multiple Choice

A trust that is established in a person's will and that takes effect only upon that person's death is called a(n) :

• A)inter vivos trust.
• B)spendthrift trust.
• C)Totten trust.
• D)testamentary trust.

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Definitions:

Long-Run

A time period in which all factors of production and costs are variable, allowing for the adjustment of all inputs.

Normal Profit

A rephrased definition: The minimum earning potential that keeps a firm operating in a competitive market, synonymous with break-even profitability.

Downward-Sloping Demand

A concept in economics that illustrates how the quantity demanded of a good decreases as its price increases, assuming all other factors remain constant.

Monopolistic Competitor

A market structure in which many firms sell products that are similar but not identical, allowing for competition on factors other than price.