How do defined-contribution plans differ from defined-benefit plans?
What will be an ideal response?
In a defined contribution plan, the firm invests contributions for the employees, who own the value of the funds in the plan. If the pension plan's investments are profitable, pension income during retirement will be high; if the pension plan's investments are not profitable, retirement income will be low. In a defined benefit plan, the firm promises employees a particular dollar benefit payment, based on each employee's earnings and years of service.
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The overall productivity crisis of the 1970s can be attributed, in part, to insufficient investment in research and development
Indicate whether the statement is true or false
There are 30 firms in an industry. What happens to that industry's four-firm concentration when the third- and fourth-largest firms merge?
A) Nothing, because their shares are already included in the concentration calculation. B) The industry's concentration ratio will fall. C) The industry's concentration ratio will increase. D) It is impossible to know without more information.
The various ways that vertical relationships can evade regulation include
a. tying the sale of a regulated good to a customer's choice of an unregulated good b. bundling regulated and unregulated goods c. preventing the exclusion of rival unregulated goods d. insuring tax rates are uniform across jurisdictions
Leisure time is not subject to diminishing marginal utility
a. True b. False