Suppose You Are a Government Analyst and You Think Beans

question 71

Multiple Choice

Suppose you are a government analyst and you think beans are particularly nourishing.You decide to subsidize beans in order to encourage people to eat more of them.(By subsidizing an item,consumers pay a lower price. ) After you successfully lower bean prices,you notice that consumption of beans has fallen.What went wrong?

• A)The substitution effect caused people to substitute ramen noodles and rice for beans.
• B)The income effect caused people's real income to fall so they could no longer afford as much food.
• C)The income effect caused people's real income to rise so they purchased less of what they considered to be inferior goods.
• D)Demand for beans is price inelastic.

Distinguish between ethical and legal actions in a business context.

Differentiate between public and private international law.

Recognize intellectual property and its role in international business.

Understand how regulatory environments influence international business opportunities.

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Definitions:

Lower-Level Needs

Fundamental physiological and safety needs in Maslow's hierarchy, such as food, water, and security, that must be satisfied before higher-level needs.

Self-Esteem

An individual's subjective evaluation of their own worth or value.

Health Promotion

The process of enabling people to increase control over and to improve their health, through lifestyle and environmental changes.

Wellness Education

Educational activities focused on promoting behaviors that contribute to a healthy lifestyle.