If the Price of Chocolate-Covered Peanuts Increases and the Demand

question 158

Multiple Choice

If the price of chocolate-covered peanuts increases and the demand for strawberry-flavored soft drinks decreases, this indicates that these two goods are:

• A) unrelated goods.
• B) complementary goods.
• C) inferior goods.
• D) substitute goods.

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Definitions:

Outsourcing

The practice of hiring third parties to perform services or create goods that traditionally were performed in-house by the company's own employees and staff.

Offshoring

The practice of relocating a company's business process, such as manufacturing or services, to another country, often to reduce costs.

Insource

The practice of assigning tasks or projects to individuals or departments within a company rather than to external entities.

IT Applications

Software applications that are designed to help individuals or businesses execute specific tasks or functions using information technology.