A good is characterized by network economies if it:
A. is widely advertised on television.
B. becomes more valuable as more people own it.
C. can be used by more than one person at a time.
D. becomes cheaper to produce as more people buy it.
Answer: B
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The figure shows the market for rental units in Gladstone. The market is in equilibrium. The government now introduces a rent ceiling of $500 a month. The price of a rental unit ________ and the number of units rented ________
A) increases by $500 per month; decreases B) increases by $100 per month; increases C) decreases by $100 per month; decreases D) remains the same; remains the same
Positive correlation between x and y implies that
A) when x is high, y is high. B) when x is high, y is low. C) when x is zero, y is positive. D) x and y are positively unrelated.
All of the following are characteristics of a perfectly competitive market EXCEPT
A) homogeneous products. B) large number of buyers and sellers. C) buyers and seller have equal access to information. D) high barriers to entry and exit.
Which of the following will cause a movement along the supply curve?
a. An increase or decrease in the raw materials costs. b. An increase in labor costs. c. Changes in the cost of the machinery used to make a good. d. Changes in the market price of a good, other things held constant.