Buyers and Sellers Neglect the External Effects of Their Actions

question 15

True/False

Buyers and sellers neglect the external effects of their actions when deciding how much to demand or supply.

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Definitions:

Scientific Thinking

A method of inquiry that involves observing phenomena, asking questions, forming hypotheses, conducting experiments, and drawing conclusions based on evidence.

Assumptions

Conditions or principles that are taken as true or as certain to happen, without proof, for the purpose of argument or investigation.

Factor Of Production

A resource used in the production process to generate goods and services, such as labor, land, and capital.

Output

The aggregate output of goods or services from a firm, industry, or the economy as a whole.