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Question: All of the following are social costs associated with insurance EXCEPT

Options:

  1.  the expense of doing business.
  2.  fraudulent claims.
  3.  inflated claims.
  4.  increased cost of capital.

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4. Increased cost of capital

All of the following are social costs associated with insurance EXCEPT increased cost of capital.


More information:

Increased capital cost refers to the cost paid by a company for issuing one additional unit of debt or equity. The cost depend on how many additional units of debt or money the company wishes to issue.

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