A Network Good Is a Good Whose Value to One

question 58

Multiple Choice

A network good is a good whose value to one consumer:

• A) increases the network of the consumer.
• B) increases some, but decreases in value as other consumers use the good.
• C) also creates the same value to other consumers as they use the good.
• D) increases the more that other consumers use the good.

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Definitions:

Moral Hazard

The situation in which one party is more likely to take risks because another party bears the cost of those risks.

Deductibles

The amount an insured person is required to pay out of pocket before an insurance company covers any expenses.

Co-Payments

Fixed amounts that an insured person is required to pay at the time of receiving medical service, with the balance covered by their health insurance.

Third-Party Liability Insurance

Insurance coverage meant to protect against claims made by a third party for damages or injuries that the policyholder is responsible for.