Understanding how individual sectors of the economy will respond to changes in key economic variables gives us a better understanding of how the macroeconomy behaves
Indicate whether the statement is true or false
TRUE
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For years, your parents claimed they had no desire to join a social web site. Recently, however, they joined one and said they did so because all their relatives have joined the same site with them. Your parents' behavior is an example of
A) a switching cost. B) a network effect. C) the impact of positive market feedback. D) the impact of negative market feedback.
Transfer earning is the minimum amount that has to be paid to a factor to allocate it in its next best alternative use
a. True b. False Indicate whether the statement is true or false
The value (purchasing power) of each unit of money
a. is largely independent of the money supply. b. tends to increase as the money supply expands. c. increases as prices rise. d. tends to decline as the money supply expands in relation to the availability of goods and services.
The idea that some people engage in risky behavior due to the fact that they have good health care is known as
A. risk aversion. B. risk-taking behavior. C. moral hazard. D. zero-sum game.