Which of the Following Statements About the Homeowners 6 (Unit-Owners

question 33

Multiple Choice

Which of the following statements about the Homeowners 6 (unit-owners form) policy is true?

• A)It includes personal liability coverage.
• B)It covers personal property on an open-perils basis.
• C)It covers the dwelling on an open-perils basis.
• D)It is designed for tenants who rent an apartment or a home.

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Definitions:

External Benefits

Benefits that are enjoyed by individuals or firms who did not directly participate in the transaction or activity that produced the benefit, also known as positive externalities.

Marginal Cost Curve

A graphical representation showing how the cost of producing one additional unit of a good varies as production increases.

Industry Supply

The total amount of a product or service that all producers in a market are willing and able to sell at a given price.

Price Floor

A government-imposed limit on how low a price can be charged, usually above the equilibrium price, which can prevent the market from clearing.