When Desired Consumption Exceeds Disposable Income,desired Saving Is ________; When

question 29

Multiple Choice

When desired consumption exceeds disposable income,desired saving is ________; when desired consumption is less than the disposable income,desired saving is ________.

• A)negative; negative
• B)positive; negative
• C)negative; positive
• D)positive; positive
• E)zero; positive

Distinguish between personal and commercial insurance policies and their areas of coverage.

Understand the concept of beneficiaries within insurance policies and the reasons for their designation.

Analyze the role of insurance in risk management for individuals and businesses.

Comprehend the mechanisms insurance companies use to mitigate moral hazards.

---

Definitions:

Bowed-Out Frontier

A graphical representation of an economy’s maximum output possibilities that show increasing opportunity costs, resulting in a curve that bows outward.

Opportunity Cost

The value of the best alternative forgone when a decision is made to choose one option over others.

Attainable Combination

An attainable combination is a set of goods or services that can be produced or provided with the available resources and technology, without overextending production capabilities.

Economy Will Produce

The total amount of goods and services that an economy is capable of producing at a given time and level of resources.