Economists Robert Jensen and Nolan Miller reasoned that to be a Giffen good, with an income effect larger than its substitution effect, a good must be ________ and make up a ________ portion of a consumer's budget
A) a normal good; very small
B) an inferior good; very small
C) a normal good; very large
D) an inferior good; very large
Answer: D
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India's rapid growth can be explained by
A) reduced regulations and market-based reforms. B) an increase in labor force participation. C) investment in human capital from 1947 through 2015. D) the movement of workers from the agricultural sector to the manufacturing sector.
In an economic model, an endogenous variable is
A) a stand-in for more complicated variables. B) determined by the model itself. C) determined outside the model. D) a variable that has no effect on the workings of the model.
Higher rates of interest increase the opportunity cost of holding money balances
a. True b. False Indicate whether the statement is true or false
The elasticity of supply of product X is unitary if the price of X rises by:
A. 5 percent and quantity supplied rises by 7 percent. B. 8 percent and quantity supplied rises by 8 percent. C. 10 percent and quantity supplied stays the same. D. 7 percent and quantity supplied rises by 5 percent.