If the income elasticity for a particular good is negative, then:
A. as income increases, consumers will tend to purchase more of the good.
B. the good is a luxury good.
C. the good is a normal good.
D. as income increases, consumers will tend to purchase less of the good.
Answer: D
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The present value of benefits (PVB) is found as
a. the discounted value of benefits for a single period without adjusting for inflation b. ?(bt/[1+rs]t), with bt= Bt/(1 + p)t c. ?(bt/[1–rs]t), with bt= Bt/(1 + p)t d. ?(bt/[1+rs]t), with bt= Bt/(1 –p)t
While working under uncertain conditions, it is better to
a. Maximize total profits b. Minimize error costs c. Maximize error costs d. Minimize profits
Classical economists believed that if saving were greater than investment, the interest rate would _____, causing saving to _____ and investment to _____ until the two were equal
a. rise; decrease; increase b. fall; decrease; increase c. fall; increase; decrease d. rise; increase; decrease e. fall; increase; increase
Specialization and trade do not allow individuals, firms, or even nations to acquire goods that lie beyond their production capabilities
a. True b. False Indicate whether the statement is true or false