« previous next »

Author Question: As more people started using smart phones, the number of smart phone applications available rose, ... (Read 105 times)

anshika

  • Hero Member
  • *****
  • Posts: 510
on: Jun 29, 2018
As more people started using smart phones, the number of smart phone applications available rose, increasing the smart phone's value to those who already owned one. This is an example of a(n) ________.
 
  A) pecuniary externality
  B) network externality
  C) moral hazard
  D) adverse selection

Question 2

What is the economic variable that guides the invisible hand?
 
  What will be an ideal response?


irishcancer18

  • Sr. Member
  • ****
  • Posts: 310
Reply #1 on: Jun 29, 2018
Answer to Question 1

B

Answer to Question 2

The invisible hand is guided by the market price. Market prices act as the most important piece of information, leading the right buyers to buy and the right sellers to sell; no more, no less. It ensures that self-interest and social interest are perfectly aligned. It also allows economic agents to make optimal decisions.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

Only 12 hours after an egg cell is fertilized by a sperm cell, the egg cell starts to divide. As it continues to divide, it moves along the fallopian tube toward the uterus at about 1 inch per day.

Did you know?

According to animal studies, the typical American diet is damaging to the liver and may result in allergies, low energy, digestive problems, and a lack of ability to detoxify harmful substances.

Did you know?

Cytomegalovirus affects nearly the same amount of newborns every year as Down syndrome.

Did you know?

Glaucoma is a leading cause of blindness. As of yet, there is no cure. Everyone is at risk, and there may be no warning signs. It is six to eight times more common in African Americans than in whites. The best and most effective way to detect glaucoma is to receive a dilated eye examination.

Did you know?

As of mid-2016, 18.2 million people were receiving advanced retroviral therapy (ART) worldwide. This represents between 43–50% of the 34–39.8 million people living with HIV.

Why people don't stop smoking Why people don't stop smoking
Turning cell phones into basic research tools with apps Turning cell phones into basic research tools with apps
Part A - Calculating the expected number of each phenotype Part A - Calculating the expected number of each phenotype
Selected Neurotransmitters: Effects and Clinical Applications Selected Neurotransmitters: Effects and Clinical Applications
People who share genes will often have similar body weights People who share genes will often have similar body weights
What mass of sulfur hexafluoride, SF6, has the same number of fluorine atoms as 25.0 g of ... What mass of sulfur hexafluoride, SF6, has the same number of fluorine atoms as 25.0 g of ...
Video: Mechanics of Sound Animation

For a complete list of videos, visit our video library