The Fewest and the Most Suicides Happen in the 11th

question 61

Multiple Choice

The fewest and the most suicides happen in the 11th and 13th month of a life insurance policy. To an economist, this occurrence:

• A)is just a fluke.
• B)is not related to the relative cost of suicide.
• C)is an illustration of the law of demand.
• D)is proof that most people committing suicide are also superstitious.

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Definitions:

Gross Profit

Gross Profit is the financial metric calculated by subtracting the cost of goods sold (COGS) from total sales revenue.

Purchases

The total amount expended on goods or services intended for use in the business process.

LIFO

"Last In, First Out," an inventory valuation method where the most recently produced or purchased items are the first to be expensed.

Cost Flow Assumption

An accounting principle that determines how costs are allocated to inventory and cost of goods sold, examples include FIFO, LIFO, and average cost methods.