Marilyn Simms Died with a $200,000 Life Insurance Policy

question 6

Multiple Choice

Marilyn Simms died with a $200,000 life insurance policy.Her husband,Jack,was the primary beneficiary and their children,Mimi (age 24) and Ann (age 30) ,were the contingent beneficiaries.All three survived Marilyn.How would the policy proceeds be distributed?

• A)$200,000 to Jack
• B)$100,000 each to Mimi and Ann
• C)$100,000 to Jack and $50,000 each to Mimi and Ann
• D)$66,666 each to Jack, Mimi, and Ann
• E)$150,000 to Jack and $25,000 each to Mimi and Ann

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Definitions:

Normal Profit

The minimum amount of profit needed for a company to remain competitive in the market; it equals the total opportunity costs of a firm.

Economic Profits

The surplus or profit earned by a firm or individual after accounting for both explicit and implicit costs.

Purely Competitive Industry

An industry characterized by many small firms producing identical products where no single firm can influence the market price.

Consumer Demand

The desire and willingness of consumers to purchase goods and services at given prices.