When a consumer's willingness to buy a good or service is influenced by the number of people who have purchased that good or service, this is called
A) a switching cost.
B) an opportunity cost.
C) a network effect.
D) an advertising gimmick.
C
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Trend-wise, the worldwide population is going as follows:
a. More rural b. More urban c. Larger family size d. Rapidly decreasing in places like Sao Paolo, Brazil
Econville suffers from a massive earthquake and tsunami that destroys a fourth of its physical resources. What happens to the production possibility frontier?
a. The production possibility frontier does not change. b. The production possibility frontier shifts to the right. c. The production possibility frontier shifts to the left. d. The production possibility frontier shifts down for capital goods but does not change for consumer goods.
The sum of the marginal utilities of a good, at any consumption level
a. cannot be measured b. adds up to total utility c. adds up to maximum utility d. is negative because of the law of diminishing marginal utility e. is zero because marginal utility eventually becomes negative, canceling the positive values of marginal utility
When firms are faced with making strategic choices to maximize profit, economists typically use
a. the theory of monopoly to model their behavior. b. the theory of aggressive competition to model their behavior. c. game theory to model their behavior. d. cartel theory to model their behavior.