The real-income effect refers to
A) the law of diminishing marginal utility.
B) the want-satisfying power of a good or service.
C) substitution of less expensive commodities for more expensive commodities.
D) the change in purchasing power when the price of a good changes.
Answer: D
Economics
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"Government should act to reduce poverty levels."
A) This statement is a normative statement. B) This statement is a positive statement. C) This statement is an example of the fallacy of composition. D) This statement is an example of the post hoc fallacy.
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Inflation is defined as an increase in:
a. real wages of workers. b. real GDP. c. the average price level. d. all consumer products.
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