An inferior good is a good whose quantity demanded
A. rises when its price falls.
B. falls when the price of a related good falls.
C. falls when the consumer’s total utility rises.
D. rises when the consumer’s real income falls.
Answer: D
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Which of the following will shift the demand curve for milk?
A. Change in the income of buyers of milk B. Change in the price of milk C. Change in input prices for milk D. All of these responses are correct.
Which of the following best describes a policy of inflation targeting?
A) It's an inflexible rule that requires the central bank to always achieve a specified inflation rate. B) It allows monetary policy to focus on inflation and inflation forecasts except in the case of severe recession. C) It allows the central bank the flexibility of setting different inflation targets each year. D) It requires central banks to target current inflation rather than inflation forecasts.
In the spring of 2002, the United States imposed tariffs on imported steel to protect the jobs of American steel workers and protect the production of the American steel industry. Why might this policy not work to increase overall employment in the United States?
What will be an ideal response?
An increase in marginal tax rates will
What will be an ideal response?