Use the Following Scenario to Answer the Next Eight Questions

question 103

Multiple Choice

Use the following scenario to answer the next eight questions:
Rosa and Dirk produce basketballs and footballs. Rosa can produce six basketballs per hour or two footballs per hour. Dirk can produce three basketballs per hour or four footballs per hour.
-Based on the scenario,Rosa's opportunity cost of one football is:

• A) 4 basketballs.
• B) 1 1/2 basketballs.
• C) 6 basketballs.
• D) 3 basketballs.
• E) 8 basketballs.

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Definitions:

Insurance Premiums

Regular payments made to an insurance company in exchange for coverage.

No-fault Insurance

An insurance policy where each party's insurance company pays for their own losses, regardless of who was at fault in the incident.

Short-rate Refund

A partial refund of an insurance premium, calculated using the short-rate method, which accounts for administrative costs and the increased risk to the insurer of policies cancelled before their original expiration.

Premium Rate

The price of an insurance premium per unit of coverage, often expressed in terms of monthly or annual cost.