Answer:
a. $17,978
b. $300,000
Explanation:
Conditions
- The cotton country of lancaster, california has owned his home for ten years
- purchased it for $178,000, cotton bought a $160,000 homeowner's insurance policy
- the replacement cost of the home is now $300,000
a. hence,
the proportion of the house insured = 
%
= 89.89%
Percentage amount covered by the policy
= proportion of the house insured = 89.89%
Amount covered by the policy in dollars
= $20,000 × 89.89%
= $17,978
b
Amount of insurance on the home that cotton should now carry to be fully reimbursed for a fire loss = current value of the home
= $ 300,000
Answer:
The correct answer is C
Explanation:
The concept of the invisible hand, is the concept in which the unobservable market force, helps the supply and the demand of the goods to reach at equilibrium in a free market.
As per this concept, the best method for society in order to encourage the jobs creation and the production of products demanded by consumers would be to allow the personal freedom entrepreneurs to follow their self interest.
Answer:
1-2%
Explanation:
In simple words, every nation in the world have some kind of central authority that works to control and keep the inflation as low as possible. However, too low inflation can also lead to recession which brings problems way worse than inflation.
Thus, keeping in mind about all the information we have studied, it is advisable to keep inflation at 1% or 2% band, so that economy can grow moderately along with no price pressure on consumers.
Answer:
B
Explanation:
Mortgages prevent government regulation of property but involve higher taxes
Answer:
True
Explanation:
The deflation arise when there is a decline in the general level of the price in the overall economy. It could be said as a negative rate of inflation
On the other hand, the disinflation arise when the inflation rate is the decline over time but it would remain positive
Therefore the given statement is true
hence, the same is to be considered
