Which of the following examples best illustrates a positive network externality?
a. Juanita buys a rare coin because she thinks it will increase in value.
b. Juanita must buy a certain brand of tires for her expensive sports car.
c. Juanita buys a robotic dog after many of her friends buy one.
d. Juanita must buy the battery for her drone from the drone manufacturer.
c. Juanita buys a robotic dog after many of her friends buy one.
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When a single tax is imposed, the excess burden is proportional to the compensated elasticity of demand and to the square of the tax rate.
A. True B. False C. Uncertain
Given total cost and the quantity of output, marginal cost and average cost can be determined.
Answer the following statement true (T) or false (F)
Spending VCU4 on real-world goods and services causes the nation's:
a. Monetary base to rise. b. M2 money supply to rise. c. M2 money multiplier to rise. d. Monetary base to remain the same.
Which of the following is an example of a positive, as opposed to normative, statement?
a. Inflation is more harmful to the economy than unemployment is. b. If welfare payments increase, the world will be a better place. c. Prices rise when the government prints too much money. d. When public policies are evaluated, the benefits to the economy of improved equality should be considered more important than the costs of reduced efficiency.