Where Does Equilibrium Occur in an Income Expenditure Diagram? What

question 121

Essay

Where does equilibrium occur in an income expenditure diagram? What would be the effect if production is at either on the left or right side of the equilibrium point?

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Definitions:

Life Policy

An insurance contract that pays a beneficiary upon the death of the insured, or after a certain period.

Quarterly Premiums

Payments made every three months for insurance policies or other agreements requiring regular fees.

Annual Premium

The amount of money that must be paid once a year to maintain an insurance policy or similar financial product.

Endowment Policy

An insurance policy that pays a specified sum to the policyholder upon a certain date, or to the beneficiaries upon the policyholder's death.