- 6-2.1: Why do many people need health insurance?
- 6-2.2: What types of health insurance plans are available?
- 6-2.3: Describe the types of coverage available in health insurance plans.
- 6-2.4: What are some things you can do to help manage health care costs?
- 6-2.5: What is the purpose of disability insurance? How is short-term disa...
- 6-2.6: List some reasons why people buy life insurance.
- 6-2.7: What is the main difference between term and permanent life insurance?
- 6-2.8: What is the face value of a life insurance policy?
- 6-2.9: Why are premiums for a group life insurance policy lower than for a...
Solutions for Chapter 6-2: Income Protection
Full solutions for Personal Financial Literacy | 1st Edition
the resources a bank’s owners have put into the institution
the idea that people should pay taxes based on the benefits they receive from government services
a large and sudden reduction in the demand for assets located in a country
the failure of majority rule to produce transitive preferences for society
constant returns to scale
The property whereby long-run average total cost stays the same as the quantity of output changes
the amount a buyer is willing to pay for a good minus the amount the buyer actually pays for it
a study that compares the costs and benefits to society of providing a public good
cross-price elasticity of demand
a measure of how much the quantity demanded of one good responds to a change in the price of another good, computed as the percentage change in quantity demanded of the first good divided by the percentage change in price of the second good
factors of production
the inputs used to produce goods and services
the setting of the level of government spending and taxation by government policymakers
law of demand
the claim that, other things being equal, the quantity demanded of a good falls when the price of the good rises
a tax that is the same amount for every person
the study of economy-wide phenomena, including inflation, unemployment, and economic growth
a market structure in which many firms sell products that are similar but not identical
nominal exchange rate
the rate at which a person can trade the currency of one country for the currency of another
the production of goods and services valued at current prices
total revenue minus total cost
the path of a variable whose changes are impossible to predict
an excess of imports over exports
the political philosophy according to which the government should choose policies to maximize the total utility of everyone in society