Which of the Following Statements Is Not True Concerning Comprehensive

question 127

Multiple Choice

Which of the following statements is not true concerning comprehensive and collision insurance?

• A) If you are financing a car, this insurance is required by the lender.
• B) Financially, it is advisable to take out the lowest deductible possible.
• C) You may want to drop this coverage on an older car that is not being financed.
• D) The deductible is really a form of self-insurance.

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Definitions:

Opportunity Costs

The forfeit of discarding the next top choice during the decision-making procedure.

Scarce Resources

Resources that are limited in availability and cannot satisfy all the various uses for them, leading to competition and the need for allocation.

Production Possibility Frontier

The Production Possibility Frontier (PPF) is a graphical representation that shows the maximum quantity of two goods or services that a society can produce, given fixed resources and technology, highlighting the trade-offs in production choices.

Labor Force

The total number of people, including both the employed and the unemployed, who are of working age and seeking employment.