Lisa and Eric Want to Keep the Cost Down on the Homeowner's

question 88

Multiple Choice

Lisa and Eric want to keep the cost down on the homeowner's insurance they will need.After talking to their parents they developed a list of ways to do so.Identify the one mistake on it.

• A)Take as high a deductible as you can afford to self insure.
• B)Install an adequate security system.
• C)Pay your insurance premiums quarterly.
• D)Install adequate smoke detectors.
• E)Insure your cars with the homeowner's company.

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Definitions:

Industrialized Countries

Nations with significant industrial activity, high levels of income per capita, and widespread infrastructure.

Paasche Index

Amount of money at current-year prices that an individual requires to purchase a current bundle of goods and services divided by the cost of purchasing the same bundle in a base year.

Nominal Income

The amount of money received in a specified period before adjusting for inflation.

Revealed Preference

An economic concept suggesting that the preferences of consumers can be observed by their purchasing habits and choices.