When personal computers were first produced, the price was very high. As time passed, the price of personal computers fell because
A) the initial price was too high and nobody bought personal computers.
B) people's incomes increased and personal computers are an inferior good.
C) the demand for personal computers decreased.
D) there were technological advances in the production of personal computers.
E) None of the above answers is correct.
D
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A regressive income tax is defined as a tax for which
A) total taxes paid increase with the level of income. B) total taxes paid are independent of the level of income. C) the average tax rate increases with the level of income. D) the average tax rate decreases with the level of income.
Figure 19.1 shows the actual behavior of inventories. Based on the figure, in which month is the discrepancy between the actual level of inventories and the desired level of inventories likely to have been smallest?
A) March 2012 B) September 2009 C) March 2010 D) September 2010