The value of the WhatsApp Messenger to an individual user increased as more of his friends and acquaintances started using it. This is an example of a(n) ________
A) moral hazard
B) adverse selection
C) network externality
D) negative externality
C
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At the output level that maximizes economic surplus
A. consumer surplus exceeds producer surplus by the greatest amount. B. marginal benefit exceeds marginal cost by the greatest amount. C. the maximum willingness to pay for the last unit of output equals the minimum acceptable price of that unit of output. D. the areas of consumer and producer surplus necessarily are equal.
Refer to Figure 28-9. A follower of the new classical macroeconomics would argue that ________ like that pursued by Paul Volcker in 1979, would result in a movement from C to A
A) expansionary fiscal policy B) contractionary monetary policy C) contractionary fiscal policy D) expansionary monetary policy
The velocity of money is the
a. rate at which the price index for consumer goods rises. b. multiple by which an increase in government expenditures will cause output to expand. c. average number of times a dollar is used to buy goods and services included in GDP. d. number of times a dollar is taken out of the country during a year.
One reason the housing bubble occurred is because the:
A. herd instinct caused everyone to stop buying homes. B. securitization of mortgages meant more mortgages were low-risk, attracting investors. C. recency effect affected people's perceptions of home values. D. All of these statements are true.