When Personal Computers Were First Produced,the Price Was Very High

question 181

Multiple Choice

When personal computers were first produced,the price was very high.As time passed,the price of personal computers fell because

• A) the demand for personal computers decreased.
• B) the initial price was too high and nobody bought personal computers.
• C) there were technological advances in the production of personal computers.
• D) people's incomes increased and personal computers are an inferior good.
• E) None of the above answers is correct.

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Definitions:

Necessities

Necessities are basic needs or essential items required for living, such as food, clothing, and shelter.

Ability-To-Pay Principle

A taxation principle that suggests taxes should be levied according to an individual or entity's ability to afford them, often implying higher taxes for those with higher income.

Pigouvian Subsidies

Financial incentives given by the government to encourage activities that have positive external effects on society.

Government Transfers

Payments by the government to individuals for which no good or service is provided in return.