Insurance Is a Tool That Can Lessen ____ Risk

question 85

Multiple Choice

Insurance is a tool that can lessen ____ risk.

• A)social
• B)mental
• C)economic
• D)accident
• E)exposure

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Definitions:

Social Cost

The total cost to society of an action, including both private costs borne by individuals and external costs absorbed by others.

Gallon

A unit of volume for liquid measure equal to four quarts, used in the United States and the United Kingdom.

Equilibrium Quantity

The quantity of goods or services supplied is equal to the quantity demanded at the market price.

Socially Optimal

A state or outcome that maximizes the overall welfare or benefit to society, often considered in economics and game theory to balance individual and collective interests.