Answer:
Extraordinary Assumption
Explanation:
Extraordinary Assumptionn
An assumption, that has a specific assignment, which, if found to be false, could alter the appraiser's opinions or conclusions. Extraordinary assumptions makes a presumption as fact otherwise concluding about physical, legal or economic characterisitcs of the subject property; or about conditions external to the property such as market conditions or trends; or about the integrity of data used in analysis, when the information is uncertain
Farmer Brown will have to charge enough to make sure he is receiving the most money for his product. He needs to make sure what he charges is more than what it costs to make his item and then profit what he would like. Maximizing profit refers to producing the quantity of output where marginal revenue is equal to marginal cost.
Question Completion:
Group of answer choices:
a. Due to the possibility of earthquake damage, Gubenator should decline coverage for the Freedom Tower.
b. Given the notoriety of the tower and the likelihood of positive press for providing coverage, Gubenator should insure the Freedom Tower.
c. Gubenator has the financial capacity to issue the policy.
d. Gubenator should insure the Freedom Tower only if it can obtain reinsurance for part of the risk from other insurance companies, since a total loss could be catastrophic to Gubenator.
Answer:
American Builders, Inc (Freedom Tower) and Gubenator Insurance Company
d. Gubenator should insure the Freedom Tower only if it can obtain reinsurance for part of the risk from other insurance companies, since a total loss could be catastrophic to Gubenator.
Explanation:
Option A establishes that the earthquake occurrence is a possibility and not a probability. That means it cannot be reasonably estimated that an earthquake may occur. Gubernator exists to insure property against the occurrence of risky events. It should go ahead and do its business. And it can spread the risk with other insurance companies through Reinsurance. Gubernator is not in the business of looking for cheap publicity, so option B is ruled out. Given that the Freedom Tower will only be one of the many properties insured by Gubernator, we cannot use its current capital to judge its capacity to handle the Freedom Tower; thus ruling out option C.
Answer:
C. discretionary policies pursue overly expansionary monetary policies to boost employment in the short run but generate higher inflation in the long run.
Explanation:
Arguments for adopting a policy rule include;
- discretionary policies pursue overly expansionary monetary policies to boost employment in the short run but generate higher inflation in the long run.
- discretion enables policymakers to change policy settings when an economy undergoes structural changes.
- discretion avoids the straightjacket that would lock in the wrong policy if the model that was used to derive the policy rule proved to be incorrect.
- policy rules can be too rigid because they cannot foresee every contingency.
- policy rules do not easily incorporate the use of judgment.
The answer would be convenience