Which of the following is a feature of the 'Data-Driven Network Effects'? MCQ with Answer and Explanation

Which of the following is a feature of the 'Data-Driven Network Effects'?
A. The feedback loop whereby more users generate more data, which improves the service and attracts still more users
B. The absence of any feedback loops
C. Network effects that are independent of data
D. Only traditional network effects without data
Answer: Option A
Solution (By JKSSB Mock Tests)
Data-driven network effects arise when additional users generate data that improve the quality of the service (e.g., through better recommendations or predictions), which in turn attracts more users, creating a self-reinforcing cycle.

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Practice More Economy Set 1 Questions

Question #1
Fixed costs are costs that:
A. vary directly with output
B. equal variable costs
C. are zero in the long run
D. remain constant irrespective of output in the short run

Correct Answer: Option D


Explanation:
Fixed costs do not change with the level of output in the short run.

This question belongs to: Economy GK Economy Set 1
Question #2
The 'Vote on Account' is generally taken for a period of:
A. five years
B. three years
C. one year
D. two months or up to six months

Correct Answer: Option D


Explanation:
Vote on Account authorizes expenditure for part of the year, generally two months.

This question belongs to: Economy GK Economy Set 1
Question #3
Price discrimination is most commonly possible under which market structure?
A. Oligopoly
B. Monopoly
C. Monopolistic competition
D. Perfect competition

Correct Answer: Option B


Explanation:
A monopolist can practise price discrimination because it has market power and can prevent resale.

This question belongs to: Economy GK Economy Set 1