Goods with small substitution effects tend to be normal goods.
Answer the following statement true (T) or false (F)
False
Rationale: The definition of normal goods relates to income effects, not substitution effects. Normal goods can have large or small substitution effects.
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Government actions designed to affect the performance of the economy as a whole are called ________ policies.
A. macroeconomic B. social C. microeconomic D. global
By convention, commercial paper issuers are divided into
A) individuals and corporations. B) private institutions and government institutions. C) large businesses and small businesses. D) financial companies and nonfinancial companies.
An increase in quantity demanded is represented by
a. a shift outward of the entire demand curve. b. a shift inward of the entire demand curve. c. a movement along the demand curve in a southeasterly direction in response to a decline in the good's price. d. a movement along the demand curve in a northwesterly direction in response to a decline in the good's price.
Habit formation in consumption implies that
A. the amount of current consumption spending is not related to the amount of past real consumption spending. B. the amount of current consumption spending is negatively related to the amount of past real consumption spending. C. consumption spending changes in a random manner over time. D. the amount of current consumption spending is directly related to the amount of past real consumption spending.