An income distribution may not give an accurate picture of the standard of living for the poor because it does not include in-kind transfers
a. True
b. False
Indicate whether the statement is true or false
True
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A person's wealth is the same as his income
Indicate whether the statement is true or false
A good is rivalrous in consumption if
A. its consumption by one person reduces its consumption by others. B. it can be used to satisfy many needs (as compared to just one need). C. it can be used to satisfy many wants (as compared to just one want). D. its consumption by one person increases its consumption by others. E. a and c
“Men are disposed, as a rule, and on the average, to increase their consumption as their income increases, but not by as much as the increase in their incomes.” Which of the following is consistent with this statement by J.M. Keynes?
A. The slope of the consumption function is positive and less than 1. B. The slope of the consumption function is greater than that of the 45-degree line. C. The slope of the consumption function is negative. D. The slope of the consumption function is equal to 1.
An inferior good is best defined as a product for which the:
A. income elasticity of demand is negative. B. income elasticity of demand is zero. C. price elasticity of demand is zero. D. price elasticity of demand is negative.