Eva is 29 years old and has 2 children, ages 3 and 5. she makes $48,500 a year. eva decides to buy a $400,000 10-year term policy and then renew the policy for another ten years afterwards. to renew the policy the insurance company charges an extra 40% to her premium rate. given the options below, assess whether eva made a wise decision.

a. eva would have been better off selecting the 20-year term policy.
b. even with the extra charge for renewal, eva’s plan is the least expensive.
c. given that eva plans to renew, she should have selected the whole life policy.
d. eva ends up paying the same amount for each policy.

scenario: hawaii and south carolina are trading partners. hawaii has an absolute advantage in the production of both coffee and tea. the opportunity cost of producing 1 pound of tea in hawaii is 2 pounds of coffee, and the opportunity cost of producing 1 pound of tea in south carolina is 1/3 pound of coffee. which of the following statements is true? a. south carolina should specialize in the production of both tea and coffee. b. hawaii should specialize in the production of tea, whereas south carolina should specialize in the production of coffee. c. hawaii should specialize in the production of coffee, whereas south carolina should specialize in the production of tea. d. hawaii should specialize in the production of both tea and coffee.