In the Event of a Loss You Should Do All

question 49

Multiple Choice

In the event of a loss you should do all of the following except

• A)report your loss immediately.
• B)refrain from making any repairs until the claims adjuster has seen the damage.
• C)make a detailed list of everything that is lost or damaged.
• D)maintain records of the insurance settlement process.

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Definitions:

Economic Decisions

Choices made by individuals, firms, or governments regarding the allocation of resources to satisfy needs and wants.

Marginal Decision Maker

is an individual or entity that makes choices based on the additional cost or benefit of the next unit of consumption or production.

Comparative Advantage

The ability of an entity to produce a good or offer a service at a lower opportunity cost than others, leading to more efficient trade.

Opportunity Cost

The value of the next best alternative forgone as a result of making a decision to pursue a certain action.