Your income response for bicycle riding changes with the amount of income you earn. At low levels of income, you view bicycle riding as an inferior good and substitute other types of transportation (e.g., auto travel) as your income rises
However, you view bicycle riding as a normal good after your income rises above a particular level. What shape does your Engel curve for bicycle riding have? A) Vertical line
B) Horizontal line
C) C-shaped
D) Upward sloping
E) none of the above
C
You might also like to view...
International trade on the basis of comparative advantage maximizes world output and allows consumers to access better-quality products at lower prices than would be available in the domestic market alone
a. True b. False Indicate whether the statement is true or false
In a relationship between two variables, the "independent variable" refers to the:
A. One measured on the vertical axis, in the convention of mathematics B. One whose value is assumed constant C. Effect or outcome D. Cause or source variable
Domestic firms operating abroad may find it economically beneficial to adopt environment-friendly standards because
A) foreign nations may be upset if firms do not use the environment-friendly technology. B) the least-cost strategy usually involves the adoption of one set of environment-friendly technology rather than multiple standards. C) they may be forced to replace the old technology whenever the foreign country experiences positive economic development. D) their environment-unfriendly technology may be replaced by foreign-based technology.
All of the following are economic implications of the 1995-2012 rise in the average rate of productivity growth except:
A. a lower natural rate of unemployment. B. larger outward shifts of the economy's production possibilities curve. C. an end to the business cycle. D. a greater rate of economic growth.