Network Externalities Exist When a Good's Value to the Consumer

question 230

Multiple Choice

Network externalities exist when a good's value to the consumer rises as:

• A)the number of people who use the good increases.
• B)the number of people who use the good decreases.
• C)the number of people who use the good remains constant.
• D)technology improves.

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Definitions:

Employee's Net Pay

The amount of salary that an employee takes home after deductions such as taxes, social security, and benefits have been subtracted.

Pay Period

The regular interval at which an employee receives a paycheck, such as weekly, bi-weekly, or monthly.

FICA Taxes

Taxes collected in the U.S. to fund the Social Security and Medicare programs, paid by both employees and employers.

Gross Earnings

The total income earned by an individual or a company before any deductions such as taxes or other expenses.