Listed Below Are Five Terms Followed by a List of Phrases

question 94

Multiple Choice

Listed below are five terms followed by a list of phrases that describe or characterize each of the terms. Match each phrase with the correct term.
-Cumulative

• A)May be increased when net income increases.
• B)A feature of preferred stock.
• C)May be reduced when shares are retired.
• D)Designed to increase the market value of stock.
• E)Reduces the net proceeds from selling shares.

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Definitions:

Snob Effect

Negative network externality in which a consumer wishes to own an exclusive or unique good.

Bandwagon Effect

Positive network externality in which a consumer wishes to possess a good in part because others do.

Network Externalities

Benefits or detriments to a product's value that result from the number of users the product has.

Negative Network Externalities

Adverse effects on a user of a product or service because the number of other users is too large or incompatible in some way.