If a decrease in income results in an increase in the quantity demanded for a product, the product is ________, and the value of the income elasticity of demand is ________.
A. a normal good; positive
B. a normal good, negative
C. an inferior good; positive
D. an inferior good; negative
Answer: D
You might also like to view...
In the long run, a perfectly competitive market will
A) produce only the quantity of output that yields a long-run profit for the typical firm. B) generate a long-run equilibrium where the typical firm operates at a loss. C) supply whatever amount consumers demand at a price determined by the minimum point on the typical firm's average total cost curve. D) supply whatever amount consumers will buy at a price which earns the market an economic profit.
Fred receives a $14,000.00 per year grant by the federal government because he is disabled. This is a
A) demerit good. B) transfer payment. C) non-rival good. D) free rider problem.
Imagine that you are on the economic development council of an LDC. You propose that the government invest in an herbal shampoo factory to make use of your country's abundant herbs. What type of development strategy is this? How do you expect it to help your country advance?
Which of the following statements is true about the circular flow?
a) Output is greater than income b) Income is more than expenditure c) Output is less than expenditure d) Output equals income equals expenditure