An example of a good that creates a positive network externality is:
A. social network websites (e.g. Facebook).
B. the telephone.
C. a workers' union.
D. All of these are examples of good that create positive network externalities.
Answer: D
You might also like to view...
According to the U.S. Treasury
A) creditors do not have to accept cash in payment of debts. B) firms do not have to accept cash as payment for goods and services. C) the government will not accept cash in payment of taxes. D) U.S. dollars must be accepted as payment for any good or service sold in the United States.
When a market clearing price is determined
A) the exchange between buyers and sellers is voluntary. B) the exchange between buyers and sellers is directed by outside factors such as the government. C) the exchange between buyers and sellers benefits only the buyers. D) the exchange between buyers and sellers benefits only the sellers.
This graph demonstrates the domestic demand and supply for a good, as well as the world price for that good.
According to the graph shown, if this economy were to open to trade, domestic prices would:
A. remain $16, with more units sold overall. B. decrease to $11 for all units. C. remain $16 for domestically produced goods, and be $23 for those units imported. D. increase to $23 for all units.
What are most goods in the economy?
a) public goods b) natural monopolies c) private goods d) common resources