A Giffen Good

question 11

Multiple Choice

A Giffen good

• A) is always the same as an inferior good.
• B) is the special subset of inferior goods in which the substitution effect dominates the income effect.
• C) is the special subset of inferior goods in which the income effect dominates the substitution effect.
• D) must have a downward sloping demand curve.

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Definitions:

Anti-federalists

A group in early American history that opposed the creation of a stronger U.S. federal government and which later opposed the ratification of the 1787 Constitution, fearing centralization of power.

Federalists

Supporters of the ratification of the U.S. Constitution, advocating for a strong federal government.

City-states

Independent, sovereign cities which operate like small countries, having their own governments and economies.

American Democracy

A system of government where power is vested in the people, who rule either directly or through freely elected representatives.