Most goods can be classified as normal goods rather than inferior goods. The definition of a normal good suggests that:
A. The income elasticity of demand for the good is negative
B. The price elasticity of demand for the good is negative
C. The income elasticity for the good is greater than 0
D. The cross elasticity of demand for the good is positive
C. The income elasticity for the good is greater than 0
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The percentage rate of change in the price level is called the
A) Consumer Price Index. B) rate of inflation. C) chain-weighted price index. D) rate of absorption.
A recessionary gap is the amount by which aggregate expenditures ____ the amount required to achieve full-employment equilibrium GDP
a. exceed b. equal c. fall short of d. are greater than
Many economic models are not sufficiently detailed to make precise numerical predictions. What, then, is the value of such models?
What will be an ideal response?
Refer to the below graphs. (Assume that the pre-migration labor force in Country A is 0d and that it is 0u in country B.) Domestic output in country B will, after the emigration of labor:
A. Increase by area qrs
B. Increase by area qtus
C. Decrease by area qrs
D. Decrease by area qtus