Suppose Louisa starts to use Facebook in order to connect with her school friends. She connects with some, but not all of them are on Facebook. If all her friends start using Facebook, it would lead to _____
a. a network externality
b. allocative efficiency
c. a socially optimum equilibrium
d. a negative externality
a
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Which of the following categories of federal spending is the largest in the United States?
A) interest on federal debt B) mandatory spending C) discretionary spending D) national defense
Economists like Hernando de Soto feel that a ___________ is the key to economic development.
A. strong national defense B. strong currency C. strong titling system D. stable currency
Payments for goods and services that will be used up by households during the year are
A. investment expenditures for the production of output. B. made by firms to households and called national income. C. called consumption expenditures. D. for intermediate goods and are not counted in GDP.
Which of the following would be the best example of economic integration to create a free-trade zone?
A. The Reciprocal Trade Agreements Acts B. The European Union C. The World Trade Organization D. The Uruguay Round