Which of the Following Is True

question 32

Multiple Choice

Which of the following is true?

• A) Changes in personal costs and benefits will exert a predictable influence on the choices of people.
• B) If one individual gains from an economic activity, then someone else must lose.
• C) If a good is provided free to an individual by government, its production will not consume valuable scarce resources.
• D) If the intentions behind a policy are good, you can be assured that the outcome will be desirable.

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Definitions:

Contract Law

The body of law that governs the formation, execution, and enforcement of contracts between parties.

Insurance Policies

Contracts between an insurer and a policyholder that provide financial protection and compensation for specific losses in return for premiums paid.

Valued Policy

A type of insurance policy where the value of the insured item is agreed upon at the time the policy is issued, and this amount is paid out in the event of a total loss.

Open Policy

An insurance policy that does not name the specific risks covered, but instead provides coverage for all risks, except those explicitly excluded.