The ________ in the market generates a downward spiral of price and quality:
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Any company
________ receiving a score of at least 85 out of 100 has the right to display a Customer- Rated Gold seal for a 1- year period.
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ValueStar
________ is a consumer guide and a business directory that uses customer satisfaction surveys to determine how well a firm does relative to its competitors in providing quality service.
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Deductibles
________ reduce the moral- hazard problem because they shift to the policyholder part of the cost of a claim on the policy.
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lemons model
The ________ makes two predictions about markets with asymmetric information.
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Insurance companies
________ use various measures to decrease the moral- hazard problem.
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asymmetric situation
A(n) ________ is a situation in which one side of the market- either buyers or sellers- has better information than the other.
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adverse selection problem
A(n) ________ is a situation in which the uniformed side of the market must choose from an undesirable or adverse selection of goods.
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demand curve
The ________ for high- cost people is higher than the curve for low- cost people, reflecting their larger benefits from having medical insurance.
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Consumer expectations
________ play a key role in determining the market outcome when there is imperfect information.
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low repair
A high- quality car, also known as a "plum, "is reliable and has relatively ________ costs.
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money-back-guarantee
The ____________ is where a seller could promise to refund the $4,000 price if the car turns out to be a lemon.
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warranties and repair
The _____________ guarantees are where the seller could promise to cover any extraordinary repair costs for 1 year.
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reservation price
A ______________ is a price at which a consumer is indifferent about the additional search for a lower price.
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