Two Technicians Are Discussing Transmissions

question 21

Multiple Choice

Two technicians are discussing transmissions. Technician A says that a RWD transmission has an integral final drive. Technician B says only transaxles have an integral final drive. Who is correct?

• A) A only
• B) B only
• C) Both A and B
• D) Neither A nor B

---

Definitions:

Substitution Effect

The financial concept stating that when prices increase or incomes drop, individuals will substitute higher-priced goods with more affordable options.

Normal Goods

Goods for which demand increases as the income of consumers increases, and falls when consumer income decreases.

Utils

A hypothetical unit of measurement used in economics to represent the satisfaction or utility that a consumer receives from consuming goods and services.

Substitution Effect

The change in consumption patterns due to a change in relative prices, where consumers replace more expensive items with less costly alternatives.