Equilibrium Exists When

question 96

Multiple Choice

Equilibrium exists when:

• A)output is distributed equitably.
• B)scarcity is eliminated.
• C)an individual would be better off taking a different action.
• D)no individual has an incentive to change his or her behavior.

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Definitions:

Loan

Money that is borrowed from a bank, financial institution, or individual under the condition that it will be paid back with interest.

Compounded Quarterly

Compounded quarterly refers to calculating interest on the principal amount and the accumulated interest every quarter, or four times a year.

Quarterly Withdrawals

Withdrawals from an account or fund that occur four times each year, typically every three months.

Education Fund

A savings or investment account set aside for the purpose of funding educational expenses.