Donna,who Is Single and 30-Years-Old,has Received Several Speeding Tickets Recently

question 12

Multiple Choice

Donna,who is single and 30-years-old,has received several speeding tickets recently and was shocked by the effect on her auto insurance.Donna drives a 2002 Pontiac Firebird.She is currently not covered by health insurance,has an emergency fund of $25,000,an income of $100,000 per year,and an investment portfolio of $230,000.She is trying to reduce the price of her auto insurance.Which of the following actions is most likely to be help Donna reduce the price of her auto insurance?

• A) Maintain her liability limits at the current levels.
• B) Raise her medical payments coverage.
• C) Raise her deductible from $250 to $1,000.
• D) Maintain collision-coverage at current levels.
• E) Raise her collision coverage by $10,000.

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Definitions:

Equilibrium Output

The level of production at which the quantity of goods supplied equals the quantity of goods demanded, leading to market stability.

Diagram

A simplified drawing using lines and symbols to represent structures, systems, or processes, aiding in the explanation or analysis of data and concepts.

Payoff Matrix

A table that shows the potential outcomes of different strategies in a decision-making process, typically used in game theory to analyze interactions between multiple players.

Duopoly

A market structure where only two sellers compete directly against each other, offering similar goods or services.