Janet bought flour and used it to bake bread she ate. ABC Bakery bought flour which it used to bake bread that customers purchased. In which case will the flour be counted as a final good?
a. Janet's purchase and ABC Bakery's purchase.
b. ABC Bakery's purchase but not Janet's purchase.
c. Janet's purchase but not ABC Bakery's purchase.
d. Neither Janet's purchase nor ABC Bakery's purchase.
c
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When the Lorenz curve lies above the diagonal,
a. the poorest 20 percent of the population receives more than 20 percent of income b. the richest 20 percent of the population receives more than 20 percent of income c. every quintile receives identical incomes d. it indicates that total income has increased even though the distribution of income remains unchanged e. it is incorrectly drawn because no Lorenz curve can lie above the diagonal
Some economists have suggested that network externalities result in consumers being locked into the use of products with inferior technologies. Economists Stan Leibowitz and Stephen Margolis have studied cases that have been cited as examples of this and
found A) there is no convincing evidence that the alternative technologies were superior. B) consumers sometimes do become locked into the use of products with inferior technologies. C) that in all of these cases network externalities resulted in market failure. D) that consumers use products with inferior technologies when their prices are lower than products with superior technologies.