The effect that an additional user of a good or participant in an activity has on the value of that good or activity for others is called:
A. network externality.
B. social externality.
C. negative externality.
D. private externality.
A. network externality.
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Which of the following describes the economic meanings of cost and price?
A) Cost is exchange worth, and price is dollar worth. B) Cost is what must be given up to produce a good, and price is what a seller receives when the good is sold. C) They are the same, and they both mean what is received when a good is sold. D) Cost refers to what the buyers pay for the good, and price refers to what sellers receive when the good is sold. E) Cost refers to the price that buyers must pay to buy the good.
When the value of the British pound changes from $1.50 to $1.25, then the pound has ________ and the U.S. dollar has ________
A) appreciated; appreciated B) depreciated; appreciated C) appreciated; depreciated D) depreciated; depreciated
For a given money demand curve, an increase in money supply: a. drives up the real interest rate
b. lowers the opportunity cost of holding money. c. decreases the quantity of money demanded. d. drives down the price level in an economy. e. contracts the total output produced in an economy.
Entrepreneurs
A. receive most of their income through inheritance. B. receive interest payments for their services. C. take risks in order to earn profits. D. are unemployed except during economic boom periods.