Use the following to answer questions 22-24:
Figure 16.1
-(Figure 16.1) If an individual with no insurance purchases partial coverage, the marginal _____ curve will shift _____, leading her to _____ theft prevention measures.
A) benefit; downward; reduce
B) benefit; upward; increase
C) cost; downward, reduce
D) cost; upward; increase

Question

Use the following to answer questions 22-24:
Figure 16.1 
-(Figure 16.1) If an individual with no insurance purchases partial coverage, the marginal _____ curve will shift _____, leading her to _____ theft prevention measures.
A) benefit; downward; reduce 
B) benefit; upward; increase 
C) cost; downward, reduce 
D) cost; upward; increase

Quizplus · Accepted Answer

When an individual with no insurance purchases partial coverage, the marginal benefit curve will shift downward as the individual is no longer fully responsible for the cost of loss. This will lead her to reduce theft prevention measures as the cost of loss is partially covered by insurance.

Use the Following to Answer Questions 22-24