For a Giffen good,
a. the income effect is greater than the substitution effect.
b. the income effect is smaller than the substitution effect.
c. the income effect equals to the substitution effect.
d. none of the above is true.
a. the income effect is greater than the substitution effect.
You might also like to view...
The above table shows the distribution of wealth and income in Miseria. Ninety-five percent of the wealth is owned by what percent of the population?
A) 20 percent B) 40 percent C) 60 percent D) 95 percent
Which of the following is not considered part of the productive resource, land?
a. raw materials. b. intellectual power. c. water resources. d. atmospheric conditions.
Linder's hypothesis says that countries with ________ of preferences will trade intensively with each other
A) differences B) utility C) similarity D) elasticity
In the 1960s, the Phillips curve was ________
A) consistent with a positive relationship between inflation and unemployment B) suggestive of a temporary trade off between inflation and unemployment C) a very popular explanation for inflation fluctuations D) all of the above E) none of the above