Product differentiation causes the seller of a good to face what type of demand curve?
a. downward sloping
b. vertical
c. horizontal
d. Any of the above could be correct since product differentiation does not affect the shape of the demand curve.
a
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Many people do NOT fully insure against risk because
A) they are risk averse. B) the insurance companies are all crooks. C) the insurance offered is less than fair. D) the insurance offered is more than fair.
Joint production is production that results in the simultaneous production of ________.
A) exactly three outputs B) exactly one output C) exactly two outputs D) two or more outputs
In setting premiums, insurance firms face which of the following problems?
a. It is difficult to assign individuals to the correct demographic group. b. Individuals do not want to pay a high premium if that matches their demographic group. c. Individuals do not always have the same characteristics as their demographic group. d. It is difficult to determine premiums for each demographic group.
According to the law of demand, a demand curve
A. Has a positive slope. B. Has a negative slope. C. Exceeds the economy's ability to produce. D. Is a horizontal or flat line.