Answer the following questions true (T) or false (F)
1. A network externality refers to a situation in which the usefulness of a product decreases with the number of consumers who use it.
2. Economists have shown that when the ultimatum game experiment is carried out, both allocators and recipients act as if fairness is important.
3. The iPod is a product without any significant network externalities.
1. FALSE
2. TRUE
3. FALSE
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An increase in the excess reserves banks want to hold, together with people depositing currency into their demand deposit accounts, would: a. increase the money supply
b. decrease the money supply. c. leave the money supply unchanged. d. have an indeterminate effect on the money supply.
Which of the following product-groups is a leading export of the United States?
A. Home appliances B. Metals C. Agricultural products D. Computers