Chapter . The new ‘sharing economy’ can enrich micro-entrepreneurs but at what cost?

If a driver uses a car as a taxi, which factor of production is the car?

Capital.

Labor.

Land.

Human capital.

If a driver uses a car as a taxi, which factor of production is the driver?

Land.

Capital.

Technology.

Labor.

If a previously unused driver and car are made to carry a passenger because of an online taxi service, we can say that what has increased?

Production and efficiency.

Production and equity.

Flexibility and equity.

Sunk cost and efficiency.

According to Arun Sundararajan, the “sharing economy” will have what effects on workers?

They will be negative in the short run and positive in the long run.

They will be positive in the short run and negative in the medium run.

They will be negative in the short run and positive in the medium run.

They will be positive in the short run and negative in the long run.

According to the video, what effects might the “sharing economy” have on wages or profits?

There will be upward pressure on wages due to increased productivity.

There will be downward pressure on profits due to increased competition.

There will be upward pressure on profits due to reduced competition.

There will be downward pressure on wages due to increased competition.