Concern About the Replacement Value Is Considered in Which Principle

question 97

Multiple Choice

Concern about the replacement value is considered in which principle of a sound insurance program?

• A) Identify business risks that can be insured.
• B) Secure insurance coverage for all major potential losses.
• C) Consider the feasibility and affordability of insuring smaller potential losses.
• D) Review and evaluate.

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Definitions:

MPC

Marginal Propensity to Consume, which represents the proportion of an increase in income that gets spent on consumption instead of being saved.

Investment Spending

Expenditures on new physical assets like buildings, machinery, and equipment, contributing to future production capacity.

GDP

Gross Domestic Product, a monetary measure of the market value of all final goods and services produced in a specific time period.

MPC

Marginal Propensity to Consume, the proportion of additional income that a consumer spends on purchasing goods and services, rather than saving.