What happens when network externalities are present?
a. The usefulness of telecommunications equipment rises.
b. The usefulness of networks diminishes with the number of consumers who enter them.
c. The usefulness of a product increases with the number of consumers who use it.
d. The usefulness of a product decreases as the number of products rises.
c. The usefulness of a product increases with the number of consumers who use it.
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Within neoclassical growth theory, technological change ________ saving and ________ investment
A) increases; increases B) increases; decreases C) decreases; increases D) decreases; decreases
The rule of equating marginal benefit with marginal cost is a tool that can be applied to a wide variety of decisions, not just economics.
Answer the following statement true (T) or false (F)
A decrease in the price of electricity can best be explained by
A. Abnormally cold winters and hot summers. B. The increased use of electronic devices such as computers. C. A decrease in the population. D. A growing economy.
Related to the Economics in Practice on p. 509: In Santa Cruz, red feathers from the Scarlet Honeyeater bird were used as currency. If someone in Santa Cruz had purchased a "huge amount " of these feathers as an investment, then in this instance, the feathers were being held as a(n)
A. unit of account. B. legal tender. C. store of value. D. medium of exchange.