As Part of Recent Cutbacks at His Company, Paul Just

question 156

Multiple Choice

As part of recent cutbacks at his company, Paul just accepted a 10percent cut in pay. Now he brews coffee at home instead of stopping at Starbucks every day. Based on this behavior, what can we assume about these goods for Paul?

• A) Home-brewed coffee is a normal good and Starbucks coffee is an inferior good.
• B) Home-brewed coffee and Starbucks coffee are normal goods.
• C) Home-brewed coffee will become a normal good over time.
• D) Home-brewed coffee is an inferior good and Starbucks coffee is a normal good.

---

Definitions:

SaaS

Software as a Service, a cloud computing offering that provides users with access to a vendor's cloud-based software.

IaaS

Infrastructure as a Service is a model of cloud computing that offers virtual computing resources via the internet.

Operating System

System software that manages computer hardware, software resources, and provides common services for computer programs, enabling the user interface with the computer hardware.

Private Clouds

IT infrastructures that are accessible only by a single entity or by an exclusive group of related entities that share the same purpose and requirements, such as all the business units within a single organization.