« previous next »

Author Question: As more people started using smart phones, the number of smart phone applications available rose, ... (Read 116 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?

Immunoglobulin injections may give short-term protection against, or reduce severity of certain diseases. They help people who have an inherited problem making their own antibodies, or those who are having certain types of cancer treatments.

Did you know?

Drying your hands with a paper towel will reduce the bacterial count on your hands by 45–60%.

Did you know?

A serious new warning has been established for pregnant women against taking ACE inhibitors during pregnancy. In the study, the risk of major birth defects in children whose mothers took ACE inhibitors during the first trimester was nearly three times higher than in children whose mothers didn't take ACE inhibitors. Physicians can prescribe alternative medications for pregnant women who have symptoms of high blood pressure.

Did you know?

Medication errors are three times higher among children and infants than with adults.

Did you know?

You should not take more than 1,000 mg of vitamin E per day. Doses above this amount increase the risk of bleeding problems that can lead to a stroke.

History of the number of observed sunspots during the last 250 years, which shows the ~11-year solar History of the number of observed sunspots during the last 250 years, which shows the ~11-year solar
Eugène Delacroix, Liberty Leading the People. Eugène Delacroix, Liberty Leading the People.
When the number of miles traveled is considered, drivers under 25 years of age and those over 70 are ... When the number of miles traveled is considered, drivers under 25 years of age and those over 70 are ...
Determination of the number of theoretical stages Determination of the number of theoretical stages
Sensory Crossover Device for Visually Impaired People Sensory Crossover Device for Visually Impaired People
How mitosis maintains the chromosome number. How mitosis maintains the chromosome number.
Video: Nucleic acid digestion - brush border enzymes, end products & transport mechanism

For a complete list of videos, visit our video library