There Is a Discussion of Kevin Trudeau in Your Textbook

question 58

Multiple Choice

There is a discussion of Kevin Trudeau in your textbook. Which answer below best describes him?

• A) He is the head of the Securities and Exchange Commission (SEC).
• B) He was sued by the Federal Trade Commission (FTC) for false advertising in 1998.
• C) He is the former CEO of Enron.
• D) He is the former prime minister of Canada.
• E) He is the former head of the FTC.

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Definitions:

Barriers

Obstacles that prevent or hinder entry into a market or the pursuit of certain activities, which can be economic, legal, technical, or natural in nature.

Allocative Efficiency

A state of the economy in which production represents consumer preferences; every good or service is produced up to the point where the last unit provides a benefit to consumers equal to the cost of producing it.

Productive Efficiency

A state where goods and services are produced at the lowest possible cost and resources are utilized in the most efficient way.

Economies of Scale

The cost advantages that enterprises obtain due to their scale of operation, with cost per unit of output decreasing with increasing scale.