What is a network externality?
A) It refers to a product that requires connection to a network for it to be useful.
B) It refers to a situation in which a product's usefulness increases with the number of people using it.
C) It refers to having a network of suppliers and buyers for a good or service.
D) It refers to lobbying to form a public enterprise.
B
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Critics of free trade sometimes argue that allowing imports from foreign countries causes a reduction in the number of domestic jobs. An economist would argue that
a. foreign competition may cause unemployment in import-competing industries, but the effect is temporary because other industries, especially exporting industries, will be expanding. b. foreign competition may cause unemployment in import-competing industries, but the increase in consumer surplus due to free trade is more valuable than the lost jobs. c. the critics are correct, so countries must protect their industries with tariffs or quotas. d. foreign competition may cause unemployment in import-competing industries, but the increase in the variety of goods consumers can choose from is more valuable than the lost jobs.
Explain what is meant by "in-kind transfer" programs. Briefly outline the advantages and disadvantages of an in-kind transfer program
Which of the following lists correctly identifies the four expenditure categories of GDP?
a. consumption, government purchases, investment, net-exports b. consumption, investment, depreciation, net-exports c. consumption, saving, investment, depreciation, d. consumption, government purchases, investment, savings
A sustained decrease in the average of all prices of goods and services in the economy is known as
A. deflation. B. inflation. C. disinflation. D. hyperinflation.