The science of knowing the customer is referred to as
A) revenue management.
B) reverse elasticity.
C) supply analysis.
D) equilibrium analysis.
QUESTION 2Health care reform will lead to a(n) ____ in the number of new, young health care recipients which will cause the ____ of moral hazard problems associated with health insurance.
a. increase; elimination
b. increase; worsening
c. decrease; elimination
d. decrease; worsening
QUESTION 3The _____ shows all of the combinations of risk and return that leaves an investor equally well off from holding either a low-risk or a high-risk investment.
a. indifference curve
b. expectation
c. standard deviation
d. correlation coefficient
QUESTION 4Price elasticity
A) is impossible to calculate.
B) can only be calculated with the experience of management.
C) can be calculated with PIMS data.
D) none of these choices.
QUESTION 5Which of the following is a result of the health care reform enacted in 2010?
a. Everyone in the U.S. must purchase health-care coverage or pay a fine.
b. Every firm with more than 50 employees must offer health-care coverage.
c. Health insurance companies must cover everyone that applies regardless of preexisting conditions.
d. all of the above
QUESTION 6If two investments, X and Y, have the same expected return an individual investor would prefer:
a. the one with a higher standard deviation.
b. the one with a higher mean.
c. the one with a lower correlation coefficient.
d. the one with a lower variance.
QUESTION 7Assume that product X has a negative cross elasticity with respect to shoes. If the price of shoes rises
A) the demand for product X will decrease.
B) the quantity demanded for product X will increase.
C) the demand for shoes will fall.
D) the demand for product X will increase.