4
practice testMultiple Choice

Practice Test

Question 4 • Economics

What is the definition of liability?

Answer
A
the amount a consumer must pay after an incident before the insurance company starts paying
B
the monthly amount paid for insurance
C
intentionally destroying something in order to collect insurance
D
a responsibility to pay for or fix a problem

Explanation

A liability is a responsibility to pay for or fix a problem. The insurance deductible is the amount paid before insurance starts covering costs, so choice B describes a deductible, not liability.

AI-written and checked against the verified answer.

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