Which of the following is used to explain why a consumer's willingness to buy Microsoft Office increases as the number of other people who use Microsoft Office increases?
A) network externalities
B) market failure
C) diminishing marginal utility
D) the income effect of a price change
Answer: A
Economics
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Which of the following situations is a clear application of the benefits principle of taxation?
a. wealthier people are taxed more heavily b. heavier vehicles are charged higher tolls on turnpikes c. state government providing a free education to any child in the state d. sales of measles vaccine exempt from sales tax
Economics
If the relative price of one unit of good Y is 0.25 units of good Z, then it follows that the absolute price of good Z can be __________ and the absolute price of good Y can be __________
A) $4,000; $2,000 B) $1,000; $2,000 C) $2,000; $1,000 D) a and c E) none of the above
Economics