Criticisms of Compulsory Insurance Laws Include Which of the Following

question 47

Multiple Choice

Criticisms of compulsory insurance laws include which of the following?
I.They provide less than complete protection since they require only a minimum amount of liability insurance.
II.Even with compulsory insurance laws,a substantial number of motorists continue to operate vehicles without insurance.

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

---

Definitions:

Slutsky Version

Pertains to the Slutsky equation in economics, which shows how changes in price affect consumer demand, separating the substitution effect from the income effect.

Hicks Version

Refers to a model or approach in economics that elaborates on how consumer demand for goods is affected by changes in income and substitution effects.

Income and Substitution Effects

The changes in consumer behavior resulting from changes in relative prices and purchasing power, affecting choices between goods.

Utility Function

A mathematical representation of how a series of choices provides different levels of happiness or satisfaction to an individual or entity.