You Probably Have Little or No Need for Life Insurance

question 5

Multiple Choice

You probably have little or no need for life insurance if you are

• A)married and your spouse works.
• B)divorced and have two children.
• C)a single person living alone or with parents.
• D)gainfully employed.
• E)a household with several children.

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Definitions:

Substitutes

Goods or services that can replace each other in usage, offering alternative choices to consumers.

Complements

Goods or services that are used together, where the use of one increases the demand for the other.

Income Elasticity of Demand

A measure of how much the quantity demanded of a good responds to a change in consumers' income, holding all other factors constant.

Inferior Good

An inferior good is a type of good whose demand decreases when consumer income rises, unlike normal goods, where demand increases with rising consumer income.