ABC Company Insured Its Building on a Replacement Cost Basis

question 10

Multiple Choice

ABC Company insured its building on a replacement cost basis for $700,000 under a property insurance policy that included an 80 percent coinsurance clause.The building had a replacement cost of $1 million when it sustained a $40,000 loss.How much will ABC Company receive from its insurer,assuming no deductible applies?

• A)$33,333
• B)$35,000
• C)$36,000
• D)$40,000

Analyze the impact of excise taxes on government revenue.

Understand the concept of tax incidence and how the burden of a tax is divided between buyers and sellers.

Analyze the factors that influence the incidence of taxation between buyers and sellers.

Understand the concept of deadweight loss resulting from a tax and its implications on market efficiency.

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Definitions:

Schizophrenia

A complex mental health disorder characterized by disordered thoughts, perceptions, emotions, and behaviors, affecting a person's ability to interpret reality.

Bipolar Disorders

A disorder in mental health, identified by significant shifts in mood, spanning from manic or hypomanic highs to depressive lows.

Pancultural

Pertaining to features or elements that are common across all cultures.

Automatism

Involuntary or unconscious actions or behaviors without conscious control or intention.