DeMario Was Turned Down When He Attempted to Buy a Life

question 81

Multiple Choice

DeMario was turned down when he attempted to buy a life insurance policy on his former Introduction to Business instructor. The most likely reason the insurance company turned down his attempt to insure the life of his former instructor was that

• A) the chance of the loss could not be measured.
• B) he did not have an insurable interest in the instructor's life.
• C) the instructor had already taken out a policy.
• D) the loss would not be accidental.

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Definitions:

Classical Theory

An economic theory that suggests that free markets operate under the laws of supply and demand and are self-regulating.

Employment

The condition of having paid work.

Unemployment

The situation in which individuals who are capable of working and actively seeking a job are unable to find employment.

Full Employment

Full employment refers to a situation where all available labor resources are being used in the most efficient way possible, with no involuntary unemployment.