If Max experiences a decrease in his income, then we would expect Max's demand for
a. each good he purchases to remain unchanged.
b. normal goods to decrease.
c. luxury goods to increase.
d. inferior goods to decrease.
b
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Based on the table below, at what world price would the country import the good?
Price Q Demanded Q Supplied 2 100 70 4 95 75 6 90 80 8 85 85 10 80 90 12 75 95 A) a price below $8 B) at exactly $8 C) a price above $8 D) It is impossible to say.
Which of the following is an example of a positive externality?
a. A local community planting 10,000 trees for green space renewal projects b. A gold mine discharging arsenic into a natural lake c. Excessive clear cutting of wood resources by logging companies d. Increased levels of air pollution in neighborhoods near a football stadium
When comparing the standard of living in two countries it is important to adjust total output for differences in:
A. political systems. B. geographic area. C. population. D. employment levels.
BMW recently decided to build a manufacturing plant in Shenyang, China. At this plant, BMW is able to take advantage of paying lower wages to its Chinese workers than it pays its German workers, but it also sacrifices the high levels of technical training possessed by its German workers. In deciding to open the Shenyang plant, BMW
A) faced no trade-offs because employing lower-wage workers increased efficiency. B) eroded some of its competitiveness in the luxury car market because of its decreased cost of production. C) faced a trade-off between higher cost and lower precision. D) adopted a negative technological change because it replaced high-skilled workers with low-skilled workers.