Economics of Risk Management

1. Which of the following is not considered a resource category?
A. Land; B. Tomatoes; C. Capital; D. Labor
2. Which of the following can be considered an externality?
A. Pollution; B. New technology; C. Traffic; D. All of the above
3. Which of the following economic analyses involves studying how a risk management option's direct benefits and costs affect the local, regional, or national economy?
A. Risk-benefit analysis; B. Incremental-cost analysis; C. Economic impact analysis; D. Cost-effective analysis