Why Is There Unequal Knowledge and Bargaining Power in the Insurance

question 38

Multiple Choice

Why is there unequal knowledge and bargaining power in the insurance transaction?

• A)the complexity of the insurance contract and the intangible nature of the product
• B)the insurance companies want to confuse consumers so it is difficult to make choices
• C)consumers do not receive the policy until months after the contract goes into effect
• D)there is no competition in the industry, therefore the consumer is stuck with inferior products

---

Definitions:

Modular Bills

A breakdown of components and assemblies needed to produce an item, organized in a hierarchical structure that supports efficient changes and updates.

Phantom Bills

An imaginary bill of materials used in manufacturing to simplify complex assemblies and compositions without altering inventory levels.

Master Production Schedule

A detailed plan that outlines what is to be produced, how much, and when, guiding manufacturing operations.

Subassemblies

Parts that are assembled separately but designed to be used as part of a larger assembly.