From an Economic Perspective, When a Consumer Decides to Buy

question 231

Multiple Choice

From an economic perspective, when a consumer decides to buy more life insurance, the consumer has most likely concluded that the

• A) marginal cost of more insurance coverage is negative.
• B) marginal benefit of more insurance coverage is greater than zero.
• C) marginal benefit of more insurance coverage is greater than the marginal cost.
• D) marginal cost of more insurance coverage is equal to the payment for the extra coverage.

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Definitions:

Descartes

René Descartes was a French philosopher, mathematician, and scientist who is considered a pivotal figure in the development of modern philosophy and analytical geometry.

God Existed

A statement that affirms the existence of a supreme being or deity.

Tabula Rasa

(Latin.) In Locke, the “blank tablet” metaphor of the mind, in opposition to the doctrine that there are innate ideas. In other words, the mind is a “blank” at birth, and everything we know must be “stamped in” through experience.

Innate Ideas

Innate Ideas are concepts or knowledge presumed to be present in the mind at birth, not derived from experience but innate in the human mind.