An Experiment by Duncan J

question 30

Multiple Choice

An experiment by Duncan J. Watts, a sociologist at Columbia University, showed that when consumers knew a particular song had been downloaded by a lot of other people, more consumers wanted to download that song as well. If this is true, this suggests that music itself may be:

• A) a competitive good.
• B) a network good.
• C) a system good.
• D) an association good.

Identify the conditions under which a principal is liable for the actions of their agent.

Describe the different ways an agency relationship can arise.

Recognize the effects of nondisclosure of agency on contractual obligations and liabilities.

Understand how agency relationships affect third-party contracts.

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Definitions:

Cross-Border Flow

The movement of goods, services, capital, and people across national boundaries.

Financial Markets

Marketplaces where people trade financial securities, commodities, and other fungible items of value at low transaction costs and at prices that reflect supply and demand.

Financialization

The increasing importance and dominance of financial markets, financial motives, financial institutions, and financial elites in the economy.

Global Strategy

A comprehensive plan developed by businesses or organizations to operate and compete on an international scale.