An Inherent Weakness of ________ Is the Absence of the Profit

question 29

Multiple Choice

An inherent weakness of ________ is the absence of the profit incentive.

• A)government-directed credit
• B)government-backed deposit insurance
• C)private loans
• D)prudential supervision

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Definitions:

Demand Schedule

A table that shows the relationship between the price of a good and the quantity demanded.

Monopoly

A market structure dominated by a single seller, facing no competition in offering a unique product or service, allowing them to control prices and market conditions.

Network Externalities

The effect that an additional user of a good or service has on the value of that product to others, often increasing the product's value as the user base grows.

Game Console

A dedicated electronic device designed to play video games through a connection to a television or other display screen.