Under Which of the Following Circumstances Would Sue's PAP Pay

question 56

Multiple Choice

Under which of the following circumstances would Sue's PAP pay something for the loss?

• A) Sue borrows her neighbor's car with permission. She causes an accident and is sued for an amount LESS THAN her neighbor's limit of liability.
• B) Sue borrows her neighbor's car with permission. She causes an accident and is sued for an amount MORE THAN her neighbor's limit of liability.
• C) Sue regularly uses her car in a business to drive college students to the airport for $50 one-way. She causes an accident and is sued by one of her paying passengers.
• D) Sue is sued for causing a collision while operating a motorcycle.

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Definitions:

MP3 Players

Portable electronic devices designed to play digital audio files in the MP3 format, popular for music playback before the widespread use of smartphones.

Unit Costs

The charges a company faces in the process of making, holding, and vending one individual unit of a particular product or service.

Optimal Quantity

The amount of a good or service that achieves the best balance between benefits and costs, maximizing net benefits to the consumer or producer.

Optimal Allocation

Optimal allocation refers to the most efficient distribution of resources and goods in an economy, maximizing the total benefit or utility gained.