Jim recently graduated from college. His income increased dramatically;from$5000 a year to $60,000 a year. Jim decided that instead of using the bus, he would buy himself a car. This implies that
a. The car is a normal good for Jim
b. The car is an inferior good for Jim
c. He is equally happy between using the bus and buying a car
d. None of the above
a
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Which of the following is NOT one of the factors that influences the supply of a product?
A) technology B) income C) number of suppliers D) expected future prices
Which of the following is an example of specialization?
A) The output of workers in a chocolate factory doubled when a new manager was appointed. B) The cost of production of a light bulb making factory decreased as its capacity increased. C) Instead of a worker making an entire shoe, the total productivity increased when different workers were allotted different jobs in the production process. D) Import of better technology and machinery from developed countries greatly increased the number of laser printers that a company was manufacturing.