A Good Is a Nonexcludable If

question 85

Multiple Choice

A good is a nonexcludable if

• A)its consumption by one person does not reduce its consumption by others.
• B)it is impossible to prevent people from obtaining the benefits of the good once it has been produced.
• C)no negative externalities are associated with its production and consumption.
• D)it is free in the first place; that is, it is so abundant that people can get all they want at zero price.

Comprehend the types and purposes of various insurance payments, such as premiums and co-payments.

Understand the application of insurance in different contexts, such as disability and commercial liability.

Grasp the concept of insurable interest and its requirement for making beneficiary claims.

Recognize how insurance policies can be cancelled or altered, including the relevance of specific clauses.

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Definitions:

Undercapitalization

The lack of funds to operate a business normally.