The situation where one person's demand for a good depends on the consumption of the good by others is called a
A) network externality.
B) network internality.
C) consumption externality.
D) production externality.
A
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In comparing the magnitudes of the components of GDP according to the expenditure approach, we see that in the United States
A) government expenditure on goods and services is the largest category. B) investment is the largest category. C) investment is much larger than government expenditure on goods and services. D) investment is less than government expenditure on goods and services. E) investment, government expenditure on goods and services, and consumption expenditure are all about the same size.
Suppose that when the price of hamburgers increases, the Ruiz family increases their purchases of hot dogs. To the Ruiz family
A) hamburgers and hot dogs are normal goods. B) hamburgers and hot dogs are substitutes. C) hamburgers and hot dogs are inferior goods. D) hamburgers and hot dogs are complements.
If more people enter medical school, we can expect:
a. the demand for doctors to increase. b. the supply of doctors to increase. c. the demand for doctors to decrease. d. the supply of doctors to decrease. e. no effect on the supply or demand of doctors?just a movement along the curves.
A legally mandated minimum wage is an example of:
a. the invisible hand principle. b. a price floor. c. a price ceiling. d. a fringe benefit.