Which of the Followings Limits Is Best Described as 150/300/50

question 70

Multiple Choice

Which of the followings limits is best described as 150/300/50?

• A)Bodily injury: $150,000 each person, $300,000 each accident; Property damage: $50,000 each accident
• B)Bodily injury: $150,000 each person; Property damage: $300,000 each accident, $50,000 each property
• C)Property damage: $150,000 each property, $300,000 each accident; Bodily injury: $50,000 each person
• D)Bodily injury: $50,000 each person; Property damage: $150,000 each accident; Limit: $300,000 each accident
• E)Bodily injury; $300,000 each person; Property damage: $50,000 each property, $150,000 each accident

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Definitions:

Artificially Scarce Good

A good that is made scarce through artificial means such as through intellectual property rights or monopoly pricing, despite its capacity for abundant supply.

External Cost

An uncompensated cost that an individual or firm imposes on others; also known as negative externality.

Marginal Costs

The additional financial burden incurred from producing another unit of a product or service.

External Cost

A cost incurred by a third party who did not agree to the action causing the cost.