The Effect That an Additional User of a Good or Participant

question 23

Multiple Choice

The effect that an additional user of a good or participant in an activity has on the value of that good or activity for others is called:

• A) network externality.
• B) social externality.
• C) negative externality.
• D) private externality.

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Definitions:

Title Passes

The point at which ownership of property is transferred from one party to another according to the terms of a contract.

Goods Arrive

The event or process where purchased or ordered products reach their destination or the buyer's location.

Fungible Goods

Goods of which any unit is identical from another and can be substituted, such as grains, fuels, or money.

Equivalent Unit

A concept in cost accounting used to express the amount of work in progress inventory in terms of fully completed units of output.