« previous next »

Author Question: As more people started using smart phones, the number of smart phone applications available rose, ... (Read 154 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?

When intravenous medications are involved in adverse drug events, their harmful effects may occur more rapidly, and be more severe than errors with oral medications. This is due to the direct administration into the bloodstream.

Did you know?

Signs of depression include feeling sad most of the time for 2 weeks or longer; loss of interest in things normally enjoyed; lack of energy; sleep and appetite disturbances; weight changes; feelings of hopelessness, helplessness, or worthlessness; an inability to make decisions; and thoughts of death and suicide.

Did you know?

It is believed that the Incas used anesthesia. Evidence supports the theory that shamans chewed cocoa leaves and drilled holes into the heads of patients (letting evil spirits escape), spitting into the wounds they made. The mixture of cocaine, saliva, and resin numbed the site enough to allow hours of drilling.

Did you know?

The use of salicylates dates back 2,500 years to Hippocrates’s recommendation of willow bark (from which a salicylate is derived) as an aid to the pains of childbirth. However, overdosage of salicylates can harm body fluids, electrolytes, the CNS, the GI tract, the ears, the lungs, the blood, the liver, and the kidneys and cause coma or death.

Did you know?

More than one-third of adult Americans are obese. Diseases that kill the largest number of people annually, such as heart disease, cancer, diabetes, stroke, and hypertension, can be attributed to diet.

Three possible phylogenies for the australopithecines with Au. anamnesis as the stem ancestor and re Three possible phylogenies for the australopithecines with Au. anamnesis as the stem ancestor and re
Unhappy people Unhappy people
A propaganda poster enshrining Stalin proclaims that he has led his people “Forward to ... A propaganda poster enshrining Stalin proclaims that he has led his people “Forward to ...
In middle childhood, children are increasingly able to understand other people’s thoughts, ... In middle childhood, children are increasingly able to understand other people’s thoughts, ...
Applications and Processing of Ceramics - Glass Forming Applications and Processing of Ceramics - Glass Forming
Exploring Getting Started With Microsoft Windows 8 Exploring Getting Started With Microsoft Windows 8
Video: Sperm Formation

For a complete list of videos, visit our video library