Network externalities:
A. weaken forces that lead to monopoly in an industry.
B. increase the likelihood that an industry will become a winner-take-all industry.
C. promote the entry of new firms in a market.
D. increase competition among existing firms in a market.
Answer: B
Economics
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A price level increase tends to reduce net exports, thereby reducing the amount of real goods and services purchased in the United States. Economists refer to this phenomenon as
A) the barrier effect. B) the Gross Domestic Product (GDP) effect. C) the open-economy effect. D) the wealth effect.
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A ________ model of the household assumes that a family maximizes its happiness under a budget constraint that pools all of its income, wealth, and time
A) unitary B) secondary C) tertiary D) primary
Economics