Although some economists believe network externalities are important barriers to entry, other economists disagree because
A) they believe that the dominant positions of firms that are supposedly due to network externalities are to a greater extent the result of the efficiency of firms in offering products that satisfy consumer preferences.
B) they believe that most examples of network externalities are really barriers to entry caused by the control of a key resource.
C) network externalities are really negative externalities.
D) they believe that the dominant positions of firms that are supposedly due to network externalities are to a greater extent the result of economies of scale.
Answer: A
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Aggregate supply shocks are:
A. the result of structural policy actions. B. the result of monetary policy actions. C. inflation shocks or shocks to potential output. D. the result of fiscal policy actions.
A change in the price of important inputs will change the quantity supplied but will not shift the supply curve.
Answer the following statement true (T) or false (F)
Which of the following is not a flow in the circular flow model?
A) the flow of profit and the flow of revenue B) the flow of income earned by households and the flow of expenditures incurred by households C) the flow of revenue received by producers and the flow of payments to resource owners D) the flow of goods and services and the flow of resources to produce goods and services
What causes AD1 to shift to AD2 in graph 2?
a. a stable PL1 in graph 2
b. a shift from MS2 to MS1 in graph 1
c. a shift from RGDP1 to RGDP2 in graph 2
d. a shift from i1 to i2 in graph 1