Title: QUIZ: Why Are Some Social Media Sites Free to Use? -- Page One Economics®
Course: Kelly's Copying and Exporting Course > Section: Why Are Some Social Media Sites Free to Use? -- Page One Economics®

Q: Which of the following is an example of a two-sided market?
- A mall
- A grocery store
- An apple farmer
- An airline company
A: A mall

Q: According to the article, negative same-side network effects
- increase the value of a social media site as more same-side users are on the site.
- decrease the value of a social media site as more same-side users are on the site.
- increase the value of a social media site as more same-side features are added to the site.
- decrease the value of a social media site as more same-side features are added to the site.
A: decrease the value of a social media site as more same-side users are on the site.

Q: Social media sites give away some services for free because
- they are usually not-for-profit organizations, so they would prefer not to charge traditional users of the site.
- they are trying to maximize profit, and this strategy allows them to charge other customers on the site more.
- the marginal cost of another user using the site is zero, and therefore they feel it is right to provide the service for free.
- social media sites are public goods, and therefore traditional users should not pay to use them.
A: they are trying to maximize profit, and this strategy allows them to charge other customers on the site more.

Q: A platform
- creates value out of negative effects.
- lowers transaction costs of buyers and sellers interacting with one another.
- combines price sensitivities from two-sided markets to create positive cross-side network effects.
- primarily sells goods and services directly to consumers.
A: lowers transaction costs of buyers and sellers interacting with one another.

Q: An example of a network good is
- a parking lot.
- a toothbrush.
- coffee.
- Wikipedia.
A: Wikipedia.

Q: Traffic on a busy highway is an example of a
- positive same-side network effect.
- negative same-side network effect.
- positive cross-network effect.
- negative cross-network effect.
A: negative same-side network effect.

Q: Drivers on a ride-sharing app will find more value on the site as more riders join the site. This is an example of a
- positive same-side network effect.
- negative same-side network effect.
- positive cross-side network effect.
- negative cross-side network effect.
A: positive cross-side network effect.

Q: Social media sites will always offer their services for free to traditional users.
- True
- False
A: False