Computer Chips Are a Normal Good

question 87

Multiple Choice

Computer chips are a normal good.Suppose the economy slips into a recession so that income falls.As a result,the demand for computer chips ________ so that the price of a computer chip ________.

• A)decreases;does not change
• B)increases;rises
• C)decreases;rises
• D)increases;falls
• E)decreases;falls

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Definitions:

Economic Man

A theoretical concept in economics that depicts an individual as a rational and self-interested agent, making decisions to maximize their utility.

Frederick W. Taylor

An American engineer and management consultant who is known as the father of scientific management, focusing on efficiency and labor productivity.

Piece Rates

A payment method in which a worker is paid a fixed rate for each unit produced or action performed, regardless of time.

Unity of Direction

A management principle suggesting that all parts of an organization should be aligned and moving towards common objectives.