While Using the Needs Analysis Approach to Determine How Much

question 22

Multiple Choice

While using the needs analysis approach to determine how much life insurance to purchase, you should:

• A)add available resources to your family's total economic needs.
• B)multiply your gross annual earnings by the size of your family.
• C)purchase the equivalent of your current annual income.
• D)divide your gross annual earnings by the size of your family.
• E)deduct available resources from your family's total economic needs.

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Definitions:

Auto Repairs

Services provided by mechanics and technicians to fix and maintain vehicles to ensure their proper functioning.

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A combustible, easily evaporated liquid obtained from petroleum, primarily utilized as fuel in engines that operate on internal combustion.

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An economic principle where a firm chooses a level of production where its marginal cost equals its marginal revenue, resulting in the highest possible profit.