If You Choose to Avoid the Risk of a Traffic

question 40

Multiple Choice

If you choose to avoid the risk of a traffic accident by not driving to work, you are using

• A) Risk avoidance.
• B) Risk reduction.
• C) Risk assumption.
• D) Risk shifting.
• E) Risk increasing.

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Definitions:

Economic Profits

Total revenues minus total costs, where total costs include both explicit and implicit costs.

Competitive Market

A market structure characterized by a large number of buyers and sellers, free entry and exit, and products that are similar enough to be interchangeable.

Long Run

A period of time in economics during which all inputs and conditions can be varied, allowing for full adjustment to changes.

Perfectly Competitive Market

A theoretical market structure characterized by an infinite number of buyers and sellers, where no single entity has the power to influence the market price.