As more people started using fax machines, fax machines became more valuable to individual users. This is an example of a(n) ________
A) moral hazard
B) adverse selection
C) network externality
D) negative externality
C
You might also like to view...
Which of the following explains the relationship between price and the quantity supplied?
a. When expanding output, firms will incur greater total costs. b. As the price of a commodity falls, producers will find it more profitable to use higher-priced inputs in their production process. c. As a result of rising production costs, firms can increase profits by expanding output only if the price of output increases. d. To expand output, firms must hire more resources, which are always of poorer quality. e. Consumers want more at lower prices.
Using Figure 3 below the distance between what 2 lines illustrate a recessionary output gap?
A. PAE2 to PAE3
B. PAE1 to PAE2
C. Y1 to Y2
D. Y2 to Y3
When a $1,000 check written on the Chase Bank is deposited in an account at the Bank of America the:
a. Liabilities of Chase fall by $1,000. b. Reserve assets of Chase increase by $1,000. c. Liabilities of the Bank of America fall by $1,000. d. Reserves of the Bank of America fall by $1,000. e. All the above.
When making investment decisions, investors
a. compare the real interest rates offered on different bonds. b. compare the nominal, but not the real, interest rates offered on different bonds. c. purchase the highest-priced bond available. d. All of the above are correct.