The situation where one person's demand for a good depends on the consumption of the good by others is called a
A) network externality.
B) network internality.
C) consumption externality.
D) production externality.
A
Economics
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The above figure shows Bob's utility function. He currently has $100 of wealth, but there is a 50% chance that it could all be stolen. If Bob could keep $50 with certainty, his utility would be
A) a. B) b. C) c. D) d.
Economics
A specific tax:
A. is a fixed dollar amount that must be paid on each unit bought or sold. B. is a tax that is stated as a percentage of the good's price. C. is a tax that is stated as a percentage of the good's price, which increases as quantity bought increases. D. is a tax that is only paid by producers.
Economics