(Scenario: Flood Area)Use Scenario: Flood Area

question 178

Multiple Choice

(Scenario: Flood Area) Use Scenario: Flood Area.A flood may occur,causing you to lose your entire home.In this case,your expected loss resulting from the flood would be: Scenario: Flood Area
Suppose that you own a home that is estimated to be worth $250,000.You live in a flood plain;as a result,the probability that you will lose your home to a flood is 30%.

• A)$250,000.
• B)$75,000.
• C)$15,000.
• D)$100,000.

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Definitions:

Resource Allocation

The process of assigning available resources in the most efficient manner to meet the objectives of an organization or economy.

Innovation Encouragement

Initiatives or policies designed to foster new ideas, products, or methods, particularly in technology, medicine, or other fields.

Economic Profit

The difference between a firm's total revenues and the sum of its explicit and implicit costs, indicating its overall financial health beyond just accounting profits.

Ideal Economic Efficiency

Achieving the optimum level of output and resource allocation where no individual or preference can be made better off without making someone else worse off.