When a Daycare Center Looks at the Recent Increase in the Number

question 118

True/False

When a daycare center looks at the recent increase in the number of working mothers in its area to determine how many employees to hire,this is an example of studying demographic forces.

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Definitions:

Economics

The social science that studies how individuals, governments, firms, and nations make choices on allocating scarce resources to satisfy their unlimited wants.

Signaling

The act of conveying information indirectly through actions or attributes, often seen in markets where there is information asymmetry.

Uninformed Party

An individual or group lacking critical information, often leading to a disadvantage in decisions or negotiations.

Moral Hazard

The situation where one party engages in risky behavior because they know another party bears the consequences of that risk.