The Basic Tools of Supply and Demand Are Central to Microeconomic

question 158

True/False

The basic tools of supply and demand are central to microeconomic analysis but are of little use to macroeconomics.

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Definitions:

Ability

The possession of the means or skill to perform a task or achieve an outcome, often acquired through practice or learning.

Self-Serving Bias

The common human tendency to attribute one's successes to personal factors while attributing failures to factors beyond one's control.

Fundamental Attribution Error

A cognitive bias where people tend to attribute others' actions to their character or disposition while underestimating situational factors.

Self-Fulfilling Prophecy

A prediction that directly or indirectly causes itself to become true due to the feedback between belief and behavior.