Which of the Following Is an Advantage of Federal Regulation

question 29

Multiple Choice

Which of the following is an advantage of federal regulation of insurance over state regulation of insurance?

• A)greater opportunity for innovation
• B)more effective treatment of systemic risk
• C)greater responsiveness to local needs
• D)more competent regulators

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Definitions:

Marginal Cost

The additional expense incurred when one more unit of a product or service is created.

Average Total Cost

The total cost divided by the quantity of output produced, representing the per-unit cost of production.

Economic Losses

Financial losses incurred by businesses or the economy as a whole, often as a result of unfavorable market conditions.