Which of the Following Is Used to Explain Why a Consumer's

question 73

Multiple Choice

Which of the following is used to explain why a consumer's willingness to buy a mobile increases as the number of other people who own and use mobiles increases?

• A) network externalities
• B) market failure
• C) diminishing marginal utility
• D) the income effect of a price change

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Definitions:

Yields To Maturity

The total return anticipated on a bond if the bond is held until it matures, including all interest payments and the repayment of principal.

Par Value

The face value of a bond or stock as stated on the certificate or instrument, not necessarily its market value.

Mature

Refers to when a bond reaches its expiry date-payback or when a market or company has reached a state of equilibrium with little growth.

Subordinated Debenture

A type of unsecured debt that ranks below other debts and securities in terms of claims on assets or earnings in the event of a liquidation.