The effect that an additional user of a good or participant in an activity has on the value of that good or activity for others is called:
A. negative externality.
B. network externality.
C. social externality.
D. private externality.
Answer: B
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Democracy is ______________ to economic growth.
A. clearly linked and is essential B. clearly linked and is not essential C. not so clearly linked, yet seems to be essential D. not so clearly linked and does not seem to be essential
A lumpy input is one that
a. is infinitely divisible b. is not smooth c. can only be adjusted in large amounts d. can not be legally employed e. can be easily adjusted in small amounts
What is true for both a monopolist and a perfect competitor?
A. Both maximize profits by producing where MR = MC. B. Both have prices that are greater than marginal revenue C. Both minimize average total cost. D. Both face downward-sloping demand curve.
Which of the following was not a reason that the Federal Reserve took on additional risks associated with unconventional policy during the recession of 2007-2009?
a. The large budget deficit constrained fiscal policy. b. The inflated price of Treasury bills made them too expensive to purchase in open market operations. c. Only the Federal Reserve acting as the central bank can serve as the lender of last resort. d. The Fed was able to act more quickly than Congress.