When the Qualitative Approach to Risk Assessment Is Used,costs Might

question 127

Multiple Choice

When the qualitative approach to risk assessment is used,costs might be estimated using

• A) replacement costs.
• B) service denial costs.
• C) business interruption costs.
• D) All of these answers are correct.

---

Definitions:

Inferior Good

A good or service whose consumption declines as income rises, prices held constant.

Positive

Characterized by or denoting an effect, result, or attribute that is beneficial or conducive to growth or well-being.

Constant Elasticity

A condition where the elasticity, or responsiveness, of a variable does not change regardless of the level of the variable being examined.

Linear Demand

A market demand situation where a product's price and the quantity demanded have a linear relationship.