Which of the Following Is Not a Consideration in Determining

question 128

Multiple Choice

Which of the following is not a consideration in determining the amount of homeowner's insurance a person needs?

• A)Cover the entire replacement cost in the event of a complete loss.
• B)Match the insurance coverage of similar homes in your neighborhood.
• C)Protect against the effect of inflation eroding away your coverage.
• D)Purchase flood or earthquake coverage if you are in an area prone to these occurrences.
• E)Determine if detached structures are adequately covered under standard policies.

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Definitions:

Consumer Surplus

The difference between the total amount that consumers are willing to pay and the actual amount they pay for a good or service.

Equilibrium Quantity

The quantity of goods or services that is supplied and demanded at the equilibrium price in a market.

Car Market

The industry related to the manufacturing, selling, and buying of automobiles.

Allocative Efficiency

A state of the economy in which production represents consumer preferences; every good or service is distributed to yield the highest aggregate utility.