Microeconomics HW Ch. 16&18

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Posted on

May 24th, 2023

question

A network good is:

answer

a good whose value increases to consumers as more consumers use the good.

question

Which goods represent network goods?

answer

Twitter, Microsoft Excel, Facebook

question

Microsoft's market power stems from:

answer

its product compatibility with a lot of other products.

question

Network goods are usually produced by:

answer

monopolies and oligopolies.

question

A Nash equilibrium in game theory is defined as a situation in which:

answer

no player has an incentive to change his or her strategy unilaterally.

question

In the case of network goods, the best product may not win because of:

answer

lock-in.

question

QWERTY is used today because it is:

answer

locked in.

question

How do Facebook, Twitter, and Google+ compete "for the market"?

answer

Users spend the most time on the same network where most of the people they know spend the most time.

question

When the market for a network good is contestable, then:

answer

it is hard for consumers to get locked into a bad outcome.

question

Contestable markets tend to arise when:

answer

the incumbent firm does not control access to an important resource.

question

A market is contestable if:

answer

a competitor could credibly enter and take away business from the incumbent.

question

Facebook dominates as the premier social networking site with more than 500 million members. However, Google has recently released Google+, a social networking site that makes it easy to create circles of information just for your friends, parents, and professional life. The market for social networking is a(n):

answer

contestable market.

question

Which increases the contestability of a market?
I. low fixed costs of entry
II. no legal barriers to entry
III. consumers are willing to try substitute goods

answer

I, II, and III

question

Hotels often offer reward cards that provide discounts to customers who frequent their establishments. Why do hotels offer these loyalty programs?

answer

to increase switching costs

question

Antitrust laws forbidding "intent to monopolize" are problematic for network goods because:

answer

all firms are competing "for the market." They are all trying to monopolize.

question

Two features of music markets are:

answer

network goods and standard wars.

question

How is music a network good?

answer

People like to listen to the music that other people listen to.

question

A firm is willing to hire a worker when the marginal product of labor is:

answer

greater than the wage.

question

The individual supply curve for labor:

answer

starts sloping up and then bends back as wages rise.

question

The market supply curve for labor:

answer

slopes up.

question

In general, wages are determined:

answer

by the skills of the worker and the productivity of the entire economy.

question

Workers in many foreign countries such as India are paid much less for work that is very similar to the work done by workers in the United States. One reason for this is that:

answer

India is a less productive economy.

question

Workers earn higher wages:
I. when the demand for labor rises in an industry.
II. the greater the amount of human capital market issues they possess.
III. the more dangerous the job they perform.

answer

I, II, and III

question

Which of the following statements is TRUE?

answer

The rising returns to human capital labor market issues may be attributable to the growing importance of advanced technology.

question

Fishermen who go deep-sea crab fishing (like those on The Deadliest Catch) earn:

answer

a compensating wage differential.

question

Suppose that being an accountant and a musician require similar amounts of skills, education, training, and so forth. If accountants are paid higher wages than musicians:

answer

the supply of musicians would decrease and the supply of accountants would increase.

question

How might unions benefit workers?

answer

by demanding improved labor/management relations and improving worker safety and work conditions

question

Aside from your skills and how hard you work, what does your marginal product of labor reflect?

answer

the productivity of everyone else in your economy

question

Discrimination is:

answer

using information about group averages to make conclusions about individuals.

question

If people with unusual first names are more likely to commit a crime than people with more popular names and employers use this information to avoid hiring people with unusual first names, they are practicing:

answer

discrimination.

question

Customer-based discrimination is weakened by:

answer

economic growth.

question

Statistical discrimination is:

answer

using information about group averages to make conclusions about individuals.

1 of 32

question

A network good is:

answer

a good whose value increases to consumers as more consumers use the good.

question

Which goods represent network goods?

answer

Twitter, Microsoft Excel, Facebook

question

Microsoft's market power stems from:

answer

its product compatibility with a lot of other products.

question

Network goods are usually produced by:

answer

monopolies and oligopolies.

question

A Nash equilibrium in game theory is defined as a situation in which:

answer

no player has an incentive to change his or her strategy unilaterally.

question

In the case of network goods, the best product may not win because of:

answer

lock-in.

question

QWERTY is used today because it is:

answer

locked in.

question

How do Facebook, Twitter, and Google+ compete "for the market"?

answer

Users spend the most time on the same network where most of the people they know spend the most time.

question

When the market for a network good is contestable, then:

answer

it is hard for consumers to get locked into a bad outcome.

question

Contestable markets tend to arise when:

answer

the incumbent firm does not control access to an important resource.

question

A market is contestable if:

answer

a competitor could credibly enter and take away business from the incumbent.

question

answer

contestable market.

question

Which increases the contestability of a market?
I. low fixed costs of entry
II. no legal barriers to entry
III. consumers are willing to try substitute goods

answer

I, II, and III

question

Hotels often offer reward cards that provide discounts to customers who frequent their establishments. Why do hotels offer these loyalty programs?

answer

to increase switching costs

question

Antitrust laws forbidding "intent to monopolize" are problematic for network goods because:

answer

all firms are competing "for the market." They are all trying to monopolize.

question

Two features of music markets are:

answer

network goods and standard wars.

question

How is music a network good?

answer

People like to listen to the music that other people listen to.

question

A firm is willing to hire a worker when the marginal product of labor is:

answer

greater than the wage.

question

The individual supply curve for labor:

answer

starts sloping up and then bends back as wages rise.

question

The market supply curve for labor:

answer

slopes up.

question

In general, wages are determined:

answer

by the skills of the worker and the productivity of the entire economy.

question

Workers in many foreign countries such as India are paid much less for work that is very similar to the work done by workers in the United States. One reason for this is that:

answer

India is a less productive economy.

question

Workers earn higher wages:
I. when the demand for labor rises in an industry.
II. the greater the amount of human capital market issues they possess.
III. the more dangerous the job they perform.

answer

I, II, and III

question

Which of the following statements is TRUE?

answer

The rising returns to human capital labor market issues may be attributable to the growing importance of advanced technology.

question

Fishermen who go deep-sea crab fishing (like those on The Deadliest Catch) earn:

answer

a compensating wage differential.

question

Suppose that being an accountant and a musician require similar amounts of skills, education, training, and so forth. If accountants are paid higher wages than musicians:

answer

the supply of musicians would decrease and the supply of accountants would increase.

question

How might unions benefit workers?

answer

by demanding improved labor/management relations and improving worker safety and work conditions

question

Aside from your skills and how hard you work, what does your marginal product of labor reflect?

answer

the productivity of everyone else in your economy

question

Discrimination is:

answer

using information about group averages to make conclusions about individuals.

question

answer

discrimination.

question

Customer-based discrimination is weakened by:

answer

economic growth.

question

Statistical discrimination is:

answer

using information about group averages to make conclusions about individuals.

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