In making decisions about insurance, a crucial piece of information to know is:
A. how easily you can reduce the risk of experiencing the event you're insuring against.
B. how catastrophic would the event's occurrence be if the event you're insuring against happened.
C. when the event you're insuring against is most likely to occur.
D. how many others will likely be affected by the same risk.
Answer: B
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A business fluctuation when the pace of business activity is speeding up is known as
A) a contraction. B) a trough. C) an expansion. D) a recession.
Which of the following observations regarding economic goods is incorrect? a. They are limited in supply
b. They are desirable. c. They are solely low-priced essential goods. d. They are scarce goods created from scarce resources
A single-price monopoly is economically inefficient because, at the profit-maximizing output:
A. marginal revenue exceeds product price at all profitable levels of production. B. monopolists always price their products on the basis of the ability of consumers to pay rather than on costs of production. C. MC > P. D. society values additional units of the monopolized product more highly than it does the alternative products those resources could otherwise produce.
The ZZZ Corporation issued $25 million in new common stock in 2016. It used $18 million of the proceeds to replace obsolete equipment in its factory and $7 million to repay bank loans. As a result, investment:
A. has not occurred. B. of $7 million has occurred. C. of $18 million has occurred. D. of $25 million has occurred.