Use the Following Information for Following Questions

question 14

Multiple Choice

Use the following information for following questions:
A group of 500 patients who suffer from skin cancer were asked to participate in a study to
determine the effectiveness of a new medication. The patients were randomly divided into two
groups, one that was given the actual medication, and one that received a placebo pill. A good
outcome was defined as the cancer being in remission after 6 months of treatment. The results of
the study are below.
-Was the new medication effective for cancer remission?

• A)Yes, a higher percent of patients who took the medication had cancer remissions than the patients who took the placebo.
• B)Yes, both groups had more patients with cancer remissions.
• C)No, the patients who took the placebo also had cancer remissions.
• D)No, this was not a controlled experiment.

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Definitions:

Network Externality

A phenomenon where the value or utility a user derives from a good or service depends on the number of users of compatible products.

Bandwagon Effect

The phenomenon where the demand for a good or service increases as more people buy it, often influenced by perceptions of popularity or social pressure.

Social Network

A platform or system that connects individuals, organizations, or entities, facilitating communication and interaction among them.

Aggregate Demand

Aggregate demand represents the total demand for all goods and services in an economy at a given overall price level and in a given time period.