When Purchasing Insurance,you Should

question 46

Multiple Choice

When purchasing insurance,you should

• A)trust your agent to determine your needs and wants.
• B)shop around for the lowest-cost coverage.
• C)stick with your current policy.
• D)understand that the best policies cost the most.

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Definitions:

Diminishing Returns

An economic principle stating that as investment in a particular area increases, the rate of profit from that investment, after a certain point, cannot continue to increase if other variables remain constant.

Decreasing Returns

A condition in economics where adding more input (like labor or capital) leads to progressively smaller increases in output.

Long-Run

A term referring to a period of time in economics during which all factors of production and costs are variable.

Short-Run

A period where at least one factor of production is fixed, and firms can only adjust the variable factors.