Which expression best defines supply and demand?
a. Supply is the provision of something and demand is need at any price. □
b. Supply is provision of something as cheaply as possible and demand is need at
that price.
□
c. Supply is the provision of something and demand is the need for something but
only at a certain price.
□
d. Supply is the provision of something at any price and demand is need at the
cheapest price.
c. Supply is the provision of something and demand is the need for something but
only at a certain price
- Which of these is not a tool that can be used to manage supply and demand?
a. Historic information. □
b. Competitive pricing. □
c. Exclusiveness. □
d. Using only online advertising
D. Using only online advertising
Which type of insurance would be described as a necessity in the UK?
a. Pet. □
b. Motor. □
c. Home contents. □
d. War. □
b. Motor.
- If the market is said to be in equilibrium what is the relationship between supply and
demand?
a. Just enough supply to meet demand. □
b. A little more supply than demand. □
c. A little more demand than supply. □
d. No link between supply and demand.
a. Just enough supply to meet demand
If there is more demand for insurance than insurers in the market what will be the
likely result?
a. More insurers will leave the market. □
b. Rates will increase. □
c. Rates will decrease. □
d. Regulators will intervene
b. Rates will increase
- After a major loss what is likely to happen to the supply of insurance?
a. Supply will increase as new insurers join the market. □
b. Supply will stay the same. □
c. Supply will reduce as insurers leave the market. □
d. Regulators will seek to control insurers’ movement in the market
c. Supply will reduce as insurers leave the market
- How might a change in the law making more classes of insurance compulsory impact
on supply and demand?
a. Greater demand will be created. □
b. Demand will stay the same. □
c. Demand will reduce. □
d. Greater demand will be created at the start but will then reduce.
a. Greater demand will be created.
