Which of the Following Is Most Likely to Be an Example

question 54

Multiple Choice

Which of the following is most likely to be an example of causation?

• A) The crime rate is high in a country. The literacy rate is high as well.
• B) A firm producing compact fluorescent light bulbs installs new machinery. Their per-day production of light bulbs increases.
• C) A soccer player scores four goals when he wears red socks. He concludes that the red socks helped him score the goals.
• D) A student wins money by scratching a ticket with a particular coin. He decides to scratch all tickets with the same coin in the future.

Understand what diffusion is and the factors affecting its rate in organizations.

Identify the only firm in Richard Walton's study where significant diffusion occurred.

Understand that complexity affects the likelihood of diffusion.

Recognize the necessity of customization for effective diffusion of innovations.

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Definitions:

Income Effect

The change in an individual's consumption patterns resulting from a change in their real income.

Labor Supply Curve

A graphical representation showing the relationship between the wage rate and the quantity of labor that workers are willing to supply.

Substitution Effect

The change in consumption patterns due to a change in relative prices, leading consumers to replace more expensive items with cheaper alternatives.

Income Effect

The change in an individual's or economy's income and how that change will affect the quantity demanded of a good or service.