The science of knowing the customer is referred to as:

The science of knowing the customer is referred to as
 A) revenue management.
  B) reverse elasticity.
  C) supply analysis.
  D) equilibrium analysis.

QUESTION 2

Health 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 3

The _____ 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 4

Price 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 5

Which 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 6

If 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 7

Assume 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.