All of the Following Are True of the Income Method

question 89

Multiple Choice

All of the following are true of the income method of determining life insurance needs except it

• A) is easy to use.
• B) does not consider your age.
• C) factors in the number of children in your family.
• D) doesn't figure in savings or investments.

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Definitions:

Social Welfare

A holistic measure of the well-being and quality of life of individuals and groups within a society.

Rights To Pollute

Permits or allowances that grant entities the authorization to emit certain amounts of pollutants, often used in regulatory systems to control environmental damage.

Coase Theorem

The Coase Theorem postulates that if property rights are well-defined and transaction costs are low, parties will negotiate privately to correct externalities and allocate resources efficiently.

Externalities

Externalities are unintended side effects of economic activity affecting third parties not directly involved in the transaction, which can be either positive or negative.