An inferior good is a good
A. that consumers purchase more when their incomes are higher.
B. of high quality.
C. that has low quality.
D. that consumers purchase less of when their incomes are higher.
Answer: D
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The marginal propensity to consume (MPC) is equal to
A) 1 + MPS. B) 1 - MPS. C) MPS + 1. D) MPS - 1.
The price of an airline ticket rises as the amount of time between purchase and flight departure gets smaller. The airlines base the policy on the assumption that
a. consumers are not aware of airline prices. b. consumer demand is unrelated to prices. c. consumer demand becomes more elastic as departure time approaches. d. consumer demand becomes less elastic as departure time approaches.
If the population of Country A has a higher percentage of retirees than the population of Country B, then:
a. the demand for loanable funds in Country A would be higher than the supply of loanable funds in Country B. b. the demand for loanable funds in Country A would be higher than the supply of loanable funds in Country A. c. the supply of loanable funds in Country A would be higher than the supply of loanable funds in Country B. d. the supply of loanable funds in Country A would be lower than the supply of loanable funds in Country B.
Suppose the price index was 105 in 2017, 126 in 2018, and the inflation rate was lower between 2018 and 2019 than it was between 2017 and 2018 . This means that
a. the price index in 2019 was lower than 126.0. b. the price index in 2019 was lower than 147.0. c. the price index in 2019 was lower than 151.2. d. the inflation rate between 2018 and 2019 was lower than 1.2 percent.