A(n) _____ Deductible Is Appropriate Only When the Insured Is

question 22

Short Answer

A(n) _____ deductible is appropriate only when the insured is unable to influence or control the amount of loss.

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Definitions:

Capital

A resource, such as equipment or buildings, used to produce goods and services.

Implicit Costs

The opportunity costs that are not directly paid for or visibly incurred in financial transactions but represent real costs to economic actors.

Economic Costs

Economic costs include both the explicit costs of production, such as raw materials and wages, and implicit costs, such as opportunity costs.

Explicit Costs

Direct, out-of-pocket payments for resources employed in the production of goods or services.