Which of the following statements is FALSE?

A) An increase in income causes an increase in the demand for a normal good.
B) An increase in income causes a decrease in the demand for an inferior good.
C) A decrease in income causes the demand curve for a normal good to shift to the left.
D) An increase in income causes the demand curve for an inferior good to shift to the right.

Answer: D

Economics

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A) increase; demand; increasing B) decrease; demand; decreasing C) increase; supply; increasing D) decrease; supply; increasing

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A good economic theory

a. has realistic assumptions b. contains as much detail as possible c. cannot be proven false d. predicts well e. can only be presented in mathematical terms

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