In order to be useful as a signal in a market with information asymmetry, the signal must be ________

Which of the following statements about positive economic analysis is true?

A) Positive analysis uses an economic model to estimate the costs and benefits of different course of actions. B) There is much less disagreement among economists over normative economic analysis than over positive economic analysis. C) There is much more disagreement among economists over positive economic analysis than over normative economic analysis. D) Unlike positive economic analysis, normative economic analysis can be tested.

In general, the income effect of an increase in the price of a normal good:

A. will cause the individual to buy more of that good because they have relatively more income. B. will cause the individual to buy less of that good because they have relatively more income. C. will cause the individual to buy less of that good because they have relatively less income. D. will cause the individual to buy more of that good because they have relatively less income.