A Surety Bond That Ensures a Property Owner of the Completion

question 38

Multiple Choice

A surety bond that ensures a property owner of the completion of a construction contract or payment of actual damages to the extent of the bond in the event that the contractor fails to complete it is called a _____ bond:

• A) judicial
• B) fidelity
• C) chattel
• D) codicil
• E) performance

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Definitions:

Concentration Ratio

A measure used in economics to indicate the relative size of firms in relation to an industry as a whole, often used to represent the level of market concentration.

Oligopolization

The process of market concentration where a few large firms begin to dominate an industry, often leading to reduced competition and higher prices for consumers.

Game Theory

The study of how people behave in strategic situations.

Colluding Oligopolist

Firms in an oligopoly market structure that secretly agree to set prices or limit production to maximize joint profits, acting against free market principles.