Haley Discovers a New Way to Design Automobile Engines So

question 17

Multiple Choice

Haley discovers a new way to design automobile engines so that they use less gasoline. Haley's finding is an example of

• A)physical capital. If Haley's discovery leads to lower gasoline prices, it has made gasoline less scarce.
• B)physical capital. If Haley's discovery leads to lower gasoline prices, it has made gasoline scarcer.
• C)technological knowledge. If Haley's discovery leads to lower gasoline prices, it has made gasoline less scarce.
• D)technological knowledge. If Haley's discovery leads to lower gasoline prices, it has made gasoline scarcer.

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Definitions:

Aluminum Production

The industrial process of extracting aluminum from its oxide, alumina, typically through the Hall-Héroult process.

Positive Externality

A benefit received by someone who had nothing to do with the activity that generated the benefit, often leading to an underproduction of the good/service in a free market.

Compensation

The complete sum of financial and non-financial compensation given to a worker by their employer in exchange for the work carried out as needed.

Marginal Seller

A seller who is indifferent about selling at the current market price and might leave the market if prices decrease.