The Easy Method of Determining Life Insurance Is Based on the Rule

question 96

Multiple Choice

The easy method of determining life insurance is based on the rule of thumb that a "typical family" will need about what percent of a wage-earner's salary for seven years?

• A)20
• B)40
• C)50
• D)70
• E)80

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Definitions:

Marginal Cost

The rise in cost resulting from the manufacture of an additional unit of a product or service.

Public Good

A product or service that is non-excludable and non-rivalrous, meaning that one's use of the good does not reduce its availability to others.

Positive Externality

A benefit that is enjoyed by a third-party resulting from an economic transaction to which they were not involved.

Public Good

A product or service that is non-excludable and non-rivalrous, meaning it can be consumed by multiple people without diminishing its availability to others.