For a demand curve to be upward sloping, the good would have to be an inferior good, and
A) the income effect would have to be smaller than the substitution effect.
B) the income effect would have to be larger than the substitution effect.
C) the income effect would have to be equal to the substitution effect.
D) the income effect and the substitution effect would have to be nonexistent.
B
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Refer to the above table. Two countries have per capita real GDPs in 2010 of $5000. If country A has a 4 percent growth rate and Country B a 5 percent growth rate, what will the per capita real GDPs of each be in the year 2060?
A) A: $15,000; B: $30,000 B) A: $40,000; B: $60,000 C) A: $35,550; B: $57,500 D) A: $24,000; B: $35,200
Who won a Nobel Prize in economics for his work in the development of game theory?
A) John Nash B) Oskar Morgenstern C) Howard Schultz D) John von Neuman
When we say that an individual behaves according to "rational self-interest," we mean that this individual
A) is motivated by greed. B) will always buy the most fashionable items available. C) will always buy the cheapest products available on the market. D) is making choices that he or she believes will leave him or her better off.
When a good is not excludable but is rival in consumption the:
A. free rider problem may arise. B. tragedy of the commons may arise. C. good is likely a private good. D. good is likely a common resource.