Why Are Insurance Contracts Said to Be Contracts of Adhesion

question 8

Multiple Choice

Why are insurance contracts said to be contracts of adhesion?

• A)The values exchanged by the parties to the contract are not equal.
• B)One party writes the contract,and the other party must accept the entire contract as written.
• C)Only one party makes a legally enforceable promise.
• D)Conditions are placed on the insurer's promise to perform.

Recognize the characteristics and implications of increasing-cost, decreasing-cost, and constant-cost industries on the industry's supply curve and market prices.

Interpret the impact of external and internal economies and diseconomies of scale on long-run average costs.

Describe the adjustment processes in perfectly competitive markets towards long-run equilibrium under different cost conditions.

Analyze the effects of demand changes on industry growth, prices, and firm entry or exit in the long run.

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Definitions:

Oil

A viscous liquid derived from petroleum, crude oil, or plants, used as fuel, in manufacturing, and as a base for many chemicals.

Consumption

The use of goods and services by households or individuals, often measured to understand economic activity and trends.

Economically Depleted

A condition where resources, assets, or energy have been consumed to the point of diminishing returns, affecting economic vitality.

Affordable Oil

The availability of oil at a cost that does not adversely affect economic growth and consumer affordability.