China Is in an Early State of Development,with a Per

question 4

True/False

China is in an early state of development,with a per capita income that is still less than $10,000,one-fifth of the per capita income in the United States.

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Definitions:

Unlimited Wants

The economic concept that human desires and needs are endless and vary in nature, leading to constant demand for goods and services.

Demand Curve

A graph showing the relationship between the price of a good and the quantity demanded of that good, typically downward sloping.

Decrease in Demand

A downward shift in the demand curve for a product or service, indicating that consumers are willing to purchase less at each price level.

Substitution Effect

The Substitution Effect refers to changes in consumption patterns due to a change in the relative prices of goods, leading consumers to replace more expensive items with less costly alternatives.