What is the difference between insurable and uninstallable risk?
What will be an ideal response?
Insurable risk means that the risk can be estimated and a payment can be made for insurance to protect against any loss that arises. Uninstallable risk is not predictable or cannot be reasonably estimated, and thus no insurance protection can be provided. In the case of fire, theft, or accidents, it is possible to purchase insurance to provide protection should a loss arise from one of those types of problems.
You might also like to view...
Inflation targeting is a policy in which the Fed
A. uses open market operations as a method of discretionary intervention. B. tries to reduce inflation by setting a high federal funds rate target. C. tries to reduce inflation by setting a low federal funds rate target. D. announces an inflation target and then runs monetary policy to hit that target.
Over the previous year, 2,000 boxes of antihistamine tablets were sold at a price of $20 per box, and during the current year, 2,500 boxes of tablets were sold at $25 a box. The most likely interpretation of these data is that the
A. supply and demand curves are shifting to the right. B. supply and demand curves are shifting to the left. C. the supply curve has shifted to the left, with no change in demand. D. the demand curve has shifted to the right, with no change in supply.
Marginal tax rates supply reliable measures of tax progressiveness.
A. True B. False C. Uncertain
Which of the following statements characterizes government transfer payment spending in the United States between 1960 and 2015?
A) Transfer payment spending by the federal government and by state and local governments has decreased as a percentage of GDP. B) Transfer payment spending by the federal government and by state and local governments has more than tripled as a percentage of GDP. C) Transfer payment spending by the federal government and by state and local governments has remained constant as a percentage of GDP. D) Transfer payment spending by the federal government and by state and local governments has fluctuated widely over this period.