Chapter 35 — Quiz

Q1. Network effects create: a) Perfect competition b) Winner-take-all market outcomes c) Lower prices d) More competitors Q2. A two-sided market: a) Has two products b) Connects two groups that benefit from each other's participation c) Always has two firms d) Is always monopolistic Q3. Near-zero marginal cost means: a) Products are free b) Serving one more digital user costs approximately nothing c) Firms can't make money d) Capital is free Q4. The most evidence-supported AI-labor scenario is: a) Mass unemployment b) No effect c) Polarization (top and bottom grow, middle hollows out) d) Everyone gets richer Q5. The gig economy debate is primarily about: a) Technology b) Whether workers should be classified as employees or contractors c) Immigration d) Trade

SA1. Why do network effects create monopoly-like outcomes? SA2. What are the three features that make digital markets different?

TF1. Google's search dominance is partly due to a data flywheel. (T/F) TF2. All gig workers have been reclassified as employees. (T/F) TF3. AI can only replace manual tasks, not cognitive ones. (T/F)

Selected answers in appendices/answers-to-selected.md.