As more people start using an operating system more applications are developed for it This makes the system more valuable to individual

As more people start using an operating system more applications are developed for it This makes the system more valuable to individual

As more people start using an operating system, more applications are developed for it. This makes the system more valuable to individual users. This is an example of a ________.

A) pecuniary externality

B) network externality

C) positive externality

D) negative externality

12) As more people started building houses in your locality, more street lights were installed in your locality making it safer and easier to drive through. This is an example of a(n) ________.

A) pecuniary externality

B) network externality

C) moral hazard

D) adverse selection

13) As more people started using smart phones, the number of smart phone applications available increased, increasing its value to those who already owned one. This is an example of a(n) ________.

A) pecuniary externality

B) network externality

C) moral hazard

D) adverse selection

14) As more people imported cars from abroad, service facilities became widely available. This increased the value of imported cars to those who owned one. This is an example of a(n) ________.

A) pecuniary externality

B) network externality

C) moral hazard

D) adverse selection

15) As more people in a developing country started using debit cards, banks installed more ATM machines, thereby benefitting all customers. This is an example of a(n) ________.

A) network externality

B) pecuniary externality

C) adverse selection

D) moral hazard

16) Economists call the influences of the decisions of others on our decisions ________.

A) peer effects

B) moral hazard

C) externalities

D) cluster effects

17) Beth has moved into a new house. Most people living in her neighborhood go for a jog early in the morning. Although Beth had always been a late riser, she too started getting up early for a jog after moving into her new house. This is an example of a(n) ________.

A) moral hazard

B) adverse selection

C) peer effect

D) negative externality

18) John started going for soccer matches after moving in with a roommate who is a huge fan of soccer. This is an example of a(n) ________.

A) moral hazard

B) adverse selection

C) peer effect

D) pecuniary externality

19) Mark started taking guitar lessons when all his cousins started playing guitar. This is an example of ________.

A) peer effect

B) moral hazard

C) adverse selection

D) a pecuniary externality

20) ________ occurs when individuals conform to the decisions of others.

A) Herding

B) Anchoring

C) Signaling

D) Sniping