The distinction between a normal and an inferior good is
A. when income increases, demand for a normal good decreases while demand for an inferior good increases
B. normal goods are used for the same purposes while inferior goods are used together
C. when income increases, demand for a normal good increases while demand for an inferior good falls
D. normal goods are used together while inferior good are used for the same purposes
Ans: C. when income increases, demand for a normal good increases while demand for an inferior good falls
You might also like to view...
If imperfect information characterizes workers' behavior, then there will be a
A) slow adjustment of the demand for labor, Nd. B) rapid adjustment of the demand for labor, Nd. C) rapid adjustment of both the demand for labor, Nd, and the supply of labor, Ns. D) a lagged adjustment of the equilibrium level of employment, Ns.
Economics: a. is a natural science like biology and chemistry
b. is a science built on survey data and declared preferences (what people say they are going to do) not on revealed preferences (how people actually behave). c. is a science concerned with reaching generalizations about human behavior, not unlike sociology or psychology. d. is concerned with predicting business conditions in the future, not with the current state of the stock market.