Author Question: As more people started using fax machines, fax machines became more valuable to individual users. ... (Read 41 times)

swpotter12 · **on:** Jun 29, 2018

As more people started using fax machines, fax machines became more valuable to individual users. This is an example of a(n) ________.

A) moral hazard
B) adverse selection
C) network externality
D) negative externality

Question 2

Did Mother Teresa create negative externalities when she helped the poor of Calcutta?

A) Yes, if her activities unintentionally imposed costs on others, such as upsetting people who don't believe in charity for the poor.
B) No, because she strove only to do good, not bad.
C) No, because her activities were accomplished in a state of grace.
D) No, because her activities were altruistic.
E) B, C, D, are all correct.