Which of the Following Statements Is True of Insurance

question 48

Multiple Choice

Which of the following statements is true of insurance?

• A)It has to be paid after the risk has been encountered.
• B)It can be obtained even if one has no insurable interest in that property.
• C)It is a means of transferring and distributing the risk of loss.
• D)It cannot be modified once issued.

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Definitions:

Marginal Revenue Product

The extra income obtained by utilizing an additional unit of a resource.

Marginal Revenue Product

The additional revenue generated from using one more unit of a resource or input in the production process.

Marginal Product

The additional product created when one unit of a certain input is added, with all other inputs held steady.

Marginal Revenue Product

The increased earnings resulting from the utilization of one additional unit of a production resource.