<span>This is an example of modified life policy. In modified life cycle, the premium differs at different stages of life. In the initial period, the person is fit and healthy and hence the premiums are low while at the later stage, a person develops various kinds of diseases and hence accordingly the premiums are increased at a later stage to compensate for that.</span>
Answer:
should exceed the rising price level.
Explanation:
Inflation occurs when there is a general increase in prices of goods and services in an economy. The price of a basket of goods increases so the purchasing power of money is reduced.
For example when a gallon of petrol sells for $50 under inflation it can rise to $100. More money will be needed to buy the same amount of goods.
In this situation the rate of return of an investment will need to be above the rising price level to maintain a positive cash flow.
This is because value of money has reduced so returns needs to be higher to make positive cash flow.
To answer this question, you must first organize your thoughts. Make a list of reasons why you would believe that you would make a good candidate, then put them into a rough draft. lastly, edit and submit.
How will goods or services be produced? is the basic basic economic question does this decision answer in a free market economy.
<h3>What is a Market economy?</h3>
In a market economy, firms and individuals interact to determine how much goods and services should cost and how to best allocate scarce resources. This word often refers to an economy that is more market oriented overall, however there may be some government intervention or central planning.
Classical economists like Adam Smith, David Ricardo, and Jean-Baptiste Say created the theoretical framework for market economies. These traditional liberal proponents of the free market thought that the "invisible hand" of the profit motive and market incentives typically led economic decisions in directions that were more productive and efficient than government economic planning.
Learn more about market economy
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