Which Goods Represent Network Goods

question 71

Multiple Choice

Which goods represent network goods?

• A) Pepsi, toilet paper, headphones
• B) calculator, oven, couch
• C) Twitter, Microsoft Excel, Facebook
• D) fireworks, lighthouse, swimming pool

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Definitions:

Positive Externality

A benefit that affects a party who did not choose to incur that benefit, typically not reflected in the market price, like vaccination.

Government Agency

A permanent or semi-permanent organization in the machinery of government that is responsible for the oversight and administration of specific functions.

Negative Externality

A cost that affects a party who did not choose to incur that cost, typically resulting from economic activity by another party.

Marginal Social Cost

The total cost to society of producing an additional unit of a good or service, including both private costs and external effects.