The ___________________Program, Notorious for Providing Low-Cost Flood Insurance That Does

question 14

Short Answer

The ___________________Program, notorious for providing low-cost flood insurance that does not reflect the actual level of risk involved, could be greatly strengthened if repetitive loss problems were addressed, perhaps by charging the owners of repetitive loss structures a higher premium for flood insurance

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Definitions:

Consumer Surplus

The consumer surplus is the gap between what consumers are ready and capable of paying for a good or service and what they actually spend on it.

Marginal Utility

The augmented satisfaction or value someone derives from the consumption of an extra unit of a good or service.

Consumer Surplus

Consumer surplus represents the discrepancy between the total price consumers are prepared and able to spend on a product or service and the actual amount they end up paying.

Marginal Utility

The additional satisfaction or utility a consumer receives from consuming one more unit of a good or service.