Why Do People Overspend on Funerals

question 61

Multiple Choice

Why do people overspend on funerals?

• A)People want to be sure they themselves will receive a lavish funeral.
• B)The bereaved are in an especially vulnerable emotional state.
• C)In order to avoid paying inheritance taxes.
• D)The complexities of governmental regulations related to burying the dead are poorly understood.

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Definitions:

Equilibrium Price

The price at which the quantity of a product offered is equal to the quantity of the product in demand, leading to a stable market condition.

Deductible

In insurance, it is the amount paid out of pocket by the policyholder before an insurance provider will pay any expenses.

Health Care Demanded

Refers to the quantity of health care services that individuals are willing and able to purchase at a given price.

Managed-Care Organizations

Health insurance companies that provide medical care directly to the insured individuals through specific networks of doctors, hospitals, and other healthcare providers.