​To Signal to Your Insurance Company That You Are a Low

question 14

Multiple Choice

​To signal to your insurance company that you are a low risk individual,to secure a lower premium,you should

• A)​Accept an insurance policy with a high deductible
• B)Accept an insurance policy with a low deductible
• C)Accept an insurance policy with a co-payment
• D)​Both A&C

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Definitions:

Income Inequality

The unequal distribution of income among individuals or households within a population.

Goods And Services

The physical items (goods) and activities or benefits (services) that fulfill consumer needs and wants.

Progressive Tax

At the individual level, a tax whose average tax rate increases as the taxpayer’s income increases. At the national level, a tax for which the average tax rate (= tax revenue/GDP) rises with GDP.

Average Tax Rate

Total tax paid divided by total taxable income or some other base (such as total income) against which to compare the amount of tax paid. Expressed as a percentage.