Which of the Following Is Not a Direct Social Benefit

question 30

Multiple Choice

Which of the following is not a direct social benefit of the insurance mechanism?

• A) Increased business and social stability
• B) Better allocation of society's resources
• C) Better choice of optimum size of business operations
• D) Lower federal and state income taxes

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Definitions:

Normal Good

A good for which demand increases as the income of consumers increases, and vice versa.

Income

Revenue generated on a regular basis from labor or investments.

Demand Curve

A graph showing how the quantity demanded of a commodity changes as its price varies.

Demand Curve

A graphical representation depicting the relationship between the price of a good or service and the quantity demanded by consumers.