Which of the Following Is the Best Example of a Market

question 207

Multiple Choice

Which of the following is the best example of a market that exhibits network externalities?

• A) Social media
• B) Agriculture
• C) Education
• D) Electricity

---

Definitions:

Wealth-Creating Transactions

Transactions that increase the wealth of the participating parties, usually through the production, exchange, or transfer of goods and services.

Wealth-Destroying Transactions

Transactions that result in a decrease in the overall wealth of the participants, often due to negative externalities or inefficient allocation of resources.

Peanuts

Legumes that are commonly consumed as snacks or used in the culinary world, also known for their oil.

Quantity Demanded

The complete volume of a good or service that consumers are ready and financially capable to acquire at a particular price point.