What Happens When a Relevant Variable That Is Not Named

question 141

Multiple Choice

What happens when a relevant variable that is not named on either axis changes?

• A) There will be a movement along the curve.
• B) The curve may or may not change depending on how the variables are related.
• C) The curve will be unaffected since only the variables on the axis affect the curve.
• D) The curve will shift.

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Definitions:

Significant Costs

Expenses that are sufficiently large to impact an entity's financial decisions or financial statements.

Externalities

Economic impacts of a product or service on parties who do not directly participate in the transaction, which can be negative (pollution) or positive (vaccination benefits).

Referent Power

A form of influence based on the charisma and interpersonal appeal of the leader, rather than on formal authority.

Positive Relationship

A connection between two or more entities characterized by mutual respect, cooperation, and beneficial outcomes for all involved.