Deductibles Are a Combination of Risk Assumption and Risk Shifting

question 16

True/False

Deductibles are a combination of risk assumption and risk shifting where the insured person pays the first part of the claim (deductible) and the rest of the claim is shifted to the insurance company.

Learn the significance of efficiency and competitive advantage as organizational objectives.

Differentiate between goals and objectives, and their measurability and time orientation.

Grasp the concept of crisis management and its essential elements.

Recognize the process and importance of staffing in an organization.

---

Definitions:

Short-Run Phillips Curve

A graphical representation that shows an inverse relationship between the rate of inflation and the unemployment rate in the short-term.

World Commodity Prices

The prices of goods such as oil, gold, coffee, etc., that are traded internationally and can fluctuate due to supply and demand dynamics.

Disinflation

A reduction in the rate of inflation; a slowdown in the rate at which prices increase over time.

Sacrifice Ratio

An economic ratio that measures the effect of rising unemployment on the reduction of inflation within an economy.