In discussions of barriers to entry, what is meant by the term "virtuous cycle"?
A) A virtuous cycle refers to successful research and development that leads to information that is used to develop other new products.
B) A virtuous cycle refers to the situation where the pursuit of self-interest in establishing an entry barrier leads to an increase in social welfare (the "invisible hand").
C) A virtuous cycle refers to a situation where if a firm can attract enough customers initially, it can attract additional customers because its product's value has been increased by other customers using it, which attracts even more customers.
D) A virtuous cycle refers to a firm using the profits from a monopoly in one market to establish a monopoly in another market.
C
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The World Bank approach to combating child labor stresses
(a) making child labor legal under certain conditions. (b) tackling the sources of poverty. (c) encouraging families to migrate to richer countries. (d) providing each child with a computer so that children have an alternative to working.
The analysis is externally valid if
A) the statistical inferences about causal effects are valid for the population being studied. B) the study has passed a double blind refereeing process for a journal. C) its inferences and conclusions can be generalized from the population and setting studied to other populations and settings. D) some committee outside the author's department has validated the findings.