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Good X and good Y are substitutes if
- the demand for Y decreases when the price for X increases.
- the demand for Y increases when the price for X decreases.
- the demand curve for Y shifts to the left when the price for X decreases.
- Both A and C.
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__________ are independently-used goods and __________ are networked goods.
- Telephones; fax machines
- Cell phones; magazines
- Highliter pens; beers
- Toothpastes; search engines
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Access to cars rather than ownership of cars cuts down air pollution because
- renters are more likely to drive more often.
- Renters have to pay for carbon tax.
- peer-to-peer rental cars are likely to be more fuel-efficient.
- ownership encourages more miles to be driven.
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The marginal cost of accommodating additional users of
non-rival goods is _____, but the total cost of providing the goods may
be _________.
- high; low.
- low; high.
- high; high
- low; low
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Movies in cinemas
- discourage the consumption of concession items at inflated prices.
- are complements to concession popcorn and soda.
- can be just as profitable without selling concession snack foods.
- Both A and B.
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A free-rider problem arises when
- Mary volunteers to help the local Public Radio station to raise funds instead of donating cash.
- the owner of a book asks his friend to read it for him instead of reading it himself.
- Mary is a regular listener of commercial radio but buys nothing from the advertisers.
- Mary lives with her mother but contributes nothing even though she is expected to.
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_______ are open-standard goods and ________ are closed-standard goods.
- Hard drives; iPads
- HD TVs; digital cameras
- iPods; X-boxes
- SD cards; USB drives
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Commercial TV network broadcast can (or must) be free because
- there is no way to exclude non-paying viewers of any TV programs.
- it costs nothing to broadcast TV programs.
- viewers simply would not pay for TV programs.
- there is no viewer congestion and viewers can be charged indirectly when they buy the advertised products.
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If good A is a complement to good Aa and good B is a
complement to good Bb while good A and good B are substitutes, an
increase in demand A would
- increase the demand for Bb.
- increase the demand for B and Bb.
- increase the demand Aa and decrease the demand Bb.
- Both A and C.
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The recent peer-to-peer sharing economy owes its existence to
- the generosity of the middlemen.
- Coase's scholarly paper on the nature of the firm.
- the lower transaction costs of matching supply and demand in the internet economy
- the generous spirit of the owners of capital goods with idle capacity.
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Manufacturers of durable goods can stabilize their revenue streams by
- buying companies that offer routine maintaining service.
- giving up the parts market.
- making their durable goods less durable.
- unilaterally shortening the warranty period.
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Demand for _____ increases as consumer income increases
- Substitute goods
- Normal goods
- Inferior goods
- Complementary goods
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_____ are first-party payment goods and ________ are third-party payment goods.
- Over-the-counter anti-itch cream; open-heart surgeries
- Non-prescription vitamin supplements; sun tanning sessions
- Public schools; kidney transplants
- Private schools; restaurant meals
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Which of the following is correct?
- Consumers prefer the low prices offered by open standards.
- Open-standard products are likely to be commodities that command high prices.
- Innovators prefer the competition offered by open standards.
- Closed-standard products open more doors for third-party suppliers.
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When a good is not subject to consumption rivalry, indirect funding would
- generate maximum benefit because even users with low marginal benefit will be attracted to the zero marginal cost.
- create unnecessary congestion.
- not make any difference to the service content regardless of the type of indirect funding.
- Both A and C.
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Which of the following is correct?
- House-brand products sell better during economic recession.
- Consumers tend to trade down from name-brand products during economic boom.
- Name-brand products sell better during economic recession.
- House-brand products sell better during economic boom.
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Most environmental problems exist because the environment is
- subject to consumption rivalry but easy to restrict access.
- subject to consumption rivalry but difficult to restrict access.
- subject to consumption non-rivalry but difficult to restrict access.
- subject to consumption non-rivalry but easy to restrict access.
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The difference between a public good and a low-congestion good depends on
- how it is funded.
- partly how technically feasible and expensive it is to exclude non-payers.
- consumption rivalry.
- Both A and B.
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Hewlett-Packard should _____ the price of its printer if it wants to sell _____ ink cartridges.
- Increase; more
- Reduce; less
- Reduce; more
- Keep constant; more
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A Public Television program on a DVD is sold as a ______ good;
when it is broadcast on the air it is a _______ good; and when it is
re-broadcast on cable television it is a _____ good.
- public; private; low-congestion
- private; low-congestion; public
- low-congestion; public; private
- private; public; low-congestion