From an Economic Perspective, When a Consumer Decides to Buy

question 231

Multiple Choice

From an economic perspective, when a consumer decides to buy more life insurance, the consumer has most likely concluded that the

• A) marginal cost of more insurance coverage is negative.
• B) marginal benefit of more insurance coverage is greater than zero.
• C) marginal benefit of more insurance coverage is greater than the marginal cost.
• D) marginal cost of more insurance coverage is equal to the payment for the extra coverage.

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Definitions:

Business Ethics

The study and examination of moral and ethical principles in the business environment, and the conduct of individuals and organizations.

Marketplace

An arena where buyers and sellers meet to exchange goods, services, or information, whether physically or through digital platforms.

Consumer Behaviour

The inquiry into processes used by individuals, groups, or organizations to select, gain, consume, and remove products, services, experiences, or thoughts for need fulfillment, and the resultant influences these processes exert on the individual and societal level.

Manipulate

To skillfully or unfairly influence or control someone or something to gain advantage, often without their knowledge.