All homothetic goods are normal goods.
Answer the following statement true (T) or false (F)
True
Rationale: Homothetic goods are goods whose consumption changes at the same rate (and in the same direction) as income --- which makes them normal goods.
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Which of the following statements about the budget deficit is TRUE?
A) It is equal to the public debt. B) It is a stock variable. C) It is a flow variable. D) none of the above
Refer to Figure 4-9. What is the area that represents producer surplus after the imposition of the price floor?
A) B + E + F B) A + B + E C) B + E D) B + C + D + E
Under a dirty float, the value of a country's currency is ________
A) fixed B) determined by the relevant currency board C) influenced by the monetary authorities D) unmanageable
As the capital stock increases, ________. This means that the marginal product of capital (MPK) ________
A) the slope of the production function falls; declines B) the slope of the production function increases; goes up C) the slope of the production function falls; goes up D) the slope of the production function increases; declines E) none of the above