The choice of a good is path dependent when
A) consumers get utility from consuming goods that others are consuming, such as restaurants.
B) the first technology that was adopted has an advantage over a better technology that came later.
C) people who move location follow the path of people who moved before them.
D) it can only be used in one way.
Answer: B
You might also like to view...
What happens to the aggregate demand curve in the United States if the exchange rate increases so that U.S.-made products become more expensive?
What will be an ideal response?
Which of the following statements is not correct?
a. Two key elements of welfare reform are work requirements and limiting the time that recipients can receive benefits. b. The Earned Income Tax Credit (EITC) is very similar to a negative income tax. c. Minimum wage laws will likely increase unemployment. d. The elderly are more likely to be poor than single mothers.
In order to shift the current production possibilities curve outward, an economy
A. Must use more of the existing resources. B. Will never be able to produce a combination of goods and services outside the current production possibilities curve. C. Can raise the prices of goods and services to encourage firms to produce more. D. Must find additional resources or better technology.
The Employment Act of 1946 committed the federal government to intervening in the economy to prevent large declines in output and employment.
Answer the following statement true (T) or false (F)