If A and B are two disjoint sets, and Pr represents the probability, then PrA and B will be:
a. negative.
b. infinity.
c. unity.
d. zero.
QUESTION 2Brand name products tend to have demand curves that are relatively more inelastic because
A) brand name products tend to have more substitutes.
B) brand name products tend to have fewer substitutes.
C) consumers are very sensitive to the prices of brand names.
D) brand names are not valued.
QUESTION 3A preferred provider organization (PPO) is:
a. an organization that contracts with physicians, medical facilities, employers, and individuals to provide medical care to a group of individuals.
b. a network of doctors who agree to provide services to a health plan's enrollees at discounted fees.
c. a not-for-profit hospital network.
d. a structure that utilizes traditional insurance plans.
QUESTION 4If A and B are two sets such that set A is a subset of B, and Pr represents the probability, then Pr(A and B) will be:
a. PrA.
b. PrB.
c. PrA-B.
d. PrA+B.
QUESTION 5The presence of substitute goods will tend to make demand more
A) inelastic.
B) unit elastic.
C) elastic.
D) vertical.
QUESTION 6Indemnity coverage does not include:
a. compensation toward the cost of medical services in the event of illness.
b. compensation toward the cost of medical services for routine health issues.
c. compensation toward the cost of medical services in the event of injury.
d. both b. and c.
QUESTION 7Two events A and B in a sample space are considered _____ if the probability that A will happen is the same regardless of whether or not B has happened.
a. conditional
b. correlated
c. independent
d. exclusive
QUESTION 8When demand is unit elastic
A) price and revenue move in opposite directions.
B) price and revenue are not related.
C) price and quantity demanded move in opposite directions.
D) price and revenue move in the same direction.
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