If You Have a $2,000 Claim Resulting from a Fire

question 75

Multiple Choice

If you have a $2,000 claim resulting from a fire in your home and your policy stipulates that your deductible is $500, then the insurance company will pay you

• A)$2,000
• B)$1,500
• C)$1,000
• D)$500
• E)$2,500

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Definitions:

Disposable Income

The amount of money that households have available for spending and saving after income taxes have been accounted for.

Personal Income

The total amount of income received by individuals from all sources, including wages, dividends, interest, and government transfers, before any deductions.

Net Taxes

The difference between taxes paid to the government and transfer payments received from the government.

Circular Flow

An economic model that depicts how money moves through an economy between producers and consumers, illustrating the interactions between different sectors.