Match Each Statement with the Correct Choice

question 155

Short Answer

Match each statement with the correct choice. Some choices may be used more than once or not used at all.
a. Increases the probate estate
b. Decreases the probate estate
c. Has no effect on the probate estate
-Two years prior to her death, the insured transferred by gift all of the incidents of ownership in an insurance policy on her life. The gift was to her son, the beneficiary of the policy.

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Definitions:

Short Run

A period in economics where at least one factor of production is fixed, leading to limited adjustments in production or operation.

Long Run

An economic phase where every production factor and cost can adjust completely to alterations, due to their variable nature.

Most Efficient Output

The level of production at which a firm or economy can produce goods at the lowest average cost, maximizing efficiency.

Profit-Maximizing

The process by which a company determines the price and output level that returns the highest profit.