Question 1(1 point)

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Tony has a cell phone, and his service provider is Verizon. When he calls his wife, Meleah, who is also a Verizon customer, he does not have to pay for those minutes. The more Verizon customers there are in the market, the more benefit Tony receives. This is:

Question 1 options:

a)	a technology spillover.

b)	a network externality.

c)	a Pigouvian subsidy.

d)	the Coase theorem.

Question 2(1 point)

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Table: The Production Possibilities for Tractors and Crude Oil Crude oil Country Tractors (thousands of barrels) United States 80 40 Mexico 60 180Table: Production Possibilities for Machinery and Petroleum Machinery (M) Petroleum (P) Countries {units) {units) United States &0 4 Mexico 6l [ =0 \fTable: Production Possibilities for the United States and Canada LS. Production Possibilities One Possibility Another Possibility Quantity of Cars (millions) 10 0 Quantity of Lumber (millions of board feet) 0 1) Canada Production Possibilities One Possibility Another Possibility Quantity of Cars (mullions) 2 i Quantity of Lumber (millions of board feet) () 12 Table: Total Cost and Total Individual Benefit Quantity of Animal Total Individual Control Officers Total Cost Benefit $0 SO 20,000 40 40,000 70 60.000 90 80.000 100 100.000 105Table: The Production Possibilities for Tractors and Crude Oil Crude oil Country Tractors (thousands of barrels) United States 80 40 Mexico 60 180Table: Production Possibilities for Machinery and Petroleum Machinery (M) Petroleum (P) Countries {units) {units) United States &0 4 Mexico 6l [ =0 \fTable: Production Possibilities for the United States and Canada LS. Production Possibilities One Possibility Another Possibility Quantity of Cars (millions) 10 0 Quantity of Lumber (millions of board feet) 0 1) Canada Production Possibilities One Possibility Another Possibility Quantity of Cars (mullions) 2 i Quantity of Lumber (millions of board feet) () 12 Table: Total Cost and Total Individual Benefit Quantity of Animal Total Individual Control Officers Total Cost Benefit $0 SO 20,000 40 40,000 70 60.000 90 80.000 100 100.000 105