Explain the difference between inferior and normal goods. As a developing economy experiences increases in income (measured by GDP), what would you predict to happen to demand for inferior goods?
Normal goods are those for which consumption increases as income rises. Inferior goods are those for which consumption decreases as income rises. We would expect the demand for inferior goods to decrease as developing countries experience increases in income.
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If the number of people in the labor force ________, then ________
A) increases; the labor force participation rate increases B) increases; the unemployment rate definitely increases C) decreases; the unemployment rate definitely decreases D) decreases; the labor force participation rate increases E) decreases, the unemployment rate does not change
Who regulates the quantity of money circulating in the economy?
A) the Federal Reserve B) the banking system C) the U.S. Congress D) the President of the United States E) The U.S. Congress and the President share the control.
Frictional unemployment is the result of
a. not enough jobs for everyone to be employed. b. unemployed workers' skills not matching those needed for the available jobs. c. a decline in the demand for labor, such as during a recession. d. imperfect information and temporary periods of unemployment while workers are changing jobs.
The Decentralized System Structure and Its Philosophy
What will be an ideal response?