Which of the Following Is a Source of Insurable Business

question 116

Multiple Choice

Which of the following is a source of insurable business risk?

• A)changes in consumer tastes
• B)changes in government policies
• C)economic recession
• D)accidents to employees

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Definitions:

Inferior Good

A type of good for which demand decreases as the income of consumers increases, opposite of normal goods.

Income Increases

Situations where individuals or households experience a rise in earnings, affecting their purchasing power and consumption choices.

Demand Curve

A graphical representation that shows the relationship between the quantity of a good or service consumers are willing and able to purchase and its price.

Excess Demand

A market condition where the quantity demanded of a good exceeds the quantity supplied at a given price, often leading to price increases.