Which Type of Risk Is Represented by Government Changes, Terrorism

question 45

Multiple Choice

Which type of risk is represented by government changes, terrorism, and social unrest?

• A) Economic
• B) Political
• C) Demographic
• D) Legal

---

Definitions:

Binding Price Floor

A minimum price set by the government for certain goods and services that is above the equilibrium price, causing a surplus.

Unwanted Surplus

An excess of goods that exceeds consumer demand, leading to unsold stock and potential waste.

Inefficiencies

Refers to situations where resources are not used in the most effective way, leading to waste or lost potential benefit.

Taxicab Medallions

License plates required for taxicabs that signify they are legally registered to operate; these medallions are often subject to municipal limitations and can be quite valuable.