Which of the Following Statements About the Risk of Terrorism

question 52

Multiple Choice

Which of the following statements about the risk of terrorism in the United States is (are) true?
I.Congress created a federal backstop for terrorism claims.
II. Coverage for losses attributable to terrorism is not marketed by private insurers in the U.S.

• A) I only
• B) II only
• C) both I and II
• D) neither I nor II

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Definitions:

Binding Price Floor

A government-imposed price control that sets the minimum price above the equilibrium price, causing a surplus in the market.

Deadweight Loss

An economic inefficiency caused by a deviation from the optimal allocation of resources, often resulting from market distortions like taxes or subsidies.

Equilibrium Quantity

The quantity of goods or services supplied is equal to the quantity demanded at the market equilibrium price.

Binding Price Floor

A legally established minimum price above the equilibrium price, causing a surplus in the market.