The existence of network externalities implies that:
a. the value of a network falls as the number of members rises.
b. the opportunity cost of switching networks is higher for larger networks.
c. smaller networks are more successful than larger ones
d. newer networks are more likely to become locked in.
e. only the most efficient and superior technology prevails in the market.
b
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Along the aggregate production function, as the quantity of labor rises, real GDP
A) rises. B) falls. C) stays the same. D) may fall, rise, or stay the same.
Which of the following categories accounted for the lowest percent of the total federal government expenditures in recent years?
a. Income security. b. National defense. c. Education and health. d. Interest on the national debt.
According to most economists, when can government debt lead to higher interest rates?
a. Always. b. Never. c. When government spends money wastefully. d. When misperceptions or default risks are significant.
Although the practice of predatory pricing is a common claim in antitrust suits, some economists are skeptical of this argument because they believe
a. the evidence of its practice is nearly impossible to collect. b. predatory pricing is not a profitable business strategy. c. even though predatory pricing is a profitable business strategy, it is on balance beneficial to society. d. predatory pricing actually attracts new firms to the industry.