Yvonne and Ty Were Due to Be Wed Last March

question 54

Multiple Choice

Yvonne and Ty were due to be wed last March when a tornado blew down the church where the wedding was to be held. Even though the wedding was postponed and they risked losing over one thousand dollars in deposits, they were not worried because they had purchased wedding insurance. The salesperson had guaranteed they would have a perfect wedding no matter what happened. When Ty called the insurance agent, he learned that the policy did not provide coverage if the wedding was postponed due to an act of nature such as a tornado. In this case, provider _____ of the gaps model of service quality was apparent as their "perfect wedding" did not happen as promised.

• A) Gap 1
• B) Gap 2
• C) Gap 3
• D) Gap 4

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Definitions:

Efficient Allocation

The process whereby resources are distributed in the most effective manner, maximizing the net benefits received by society.

Economic Profits

Economic profits are the total revenues of a firm minus the opportunity costs of all inputs, reflecting the surplus generated beyond the normal rate of return.

Partial Equilibrium

An economic analysis or condition where the equilibrium is studied for only a part of the market, keeping other parts constant.

Personal Computer Industry

A sector of the technology market that focuses on the manufacturing, distribution, and sale of personal computers and related software and hardware.