The Economics of Free: Checkpoint 1

Quick checkpoint - five questions on the economics of free.

Question 1 of 5 In a freemium model, who pays?

Nobody A small share of users who upgrade Only the government Only advertisers

Free users get a basic tier.

Question 2 of 5 What is a loss leader?

A bank A product sold at or below cost to attract customers A tax A failed product

Shops earn on other goods.

Question 3 of 5 What does India's 2023 data law require?

Free apps No data collection at all Consent for using personal data Paid email

The DPDP Act gives users rights.

Question 4 of 5 What is a public good?

A tax A government uniform A private car A good no one can be excluded from and whose use doesn't reduce others' use

Street lighting is an example.

Question 5 of 5 What is the zero price effect?

A bank rule People are drawn to free options more than logic suggests Zero tax Prices are always zero

It biases choices.

We believe knowledge should be open to everyone, not limited by barriers.

Welcome to EconReads

This site is made for visually impaired learners, so our read-aloud reader is already switched on to help you explore hands-free.

You're in control - turn it off any time using the Reader button at the top of the page.

यह साइट दृष्टिबाधित शिक्षार्थियों के लिए बनाई गई है, इसलिए हमारा ज़ोर से पढ़ने वाला रीडर आपको बिना हाथ लगाए घूमने में मदद के लिए पहले से चालू है।

नियंत्रण आपके हाथ में है - पेज के ऊपर मौजूद रीडर बटन से इसे कभी भी बंद करें।

Don't show this message again

EconReader Reading speed Ready