Choose the Item Below That Is notrue for Group Life

question 27

Multiple Choice

Choose the item below that is notrue for group life insurance.

• A) Benefit amounts are usually increased by the employer at 5-year intervals.
• B) Their number is growing.
• C) Benefits are determined by a predetermined formula.
• D) The group must not be formed solely to purchase insurance.

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Definitions:

Firm

A business or company that sells goods or services in an attempt to earn a profit.

Competitive Price-Taker Firm

A business that accepts market prices as given because it has no power to influence them.

Economic Profit

The difference between the total revenue received from the sale of an output and the total opportunity costs of the inputs used.

Economic Losses

Monetary losses incurred from business operations or other economic activities, often delineated from accounting losses.