Good a Is a Normal Good If

question 97

Multiple Choice

Good A is a normal good if

• A)a rise in the price of a complement causes the demand for A to decrease.
• B)income and the demand for A are negatively related.
• C)a rise in the price of a substitute causes the demand for A to increase.
• D)the demand for A increases when income rises.
• E)good A satisfies the law of demand.

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Definitions:

Agriculture

The science or practice of farming, including cultivation of the soil for the growing of crops and the rearing of animals to provide food, wool, and other products.

Capital-Using Technological Advance

A capital-using technological advance refers to innovations that increase the amount of capital per worker used in the production process, potentially enhancing productivity but also increasing capital costs.

Vicious Cycle of Poverty

A self-perpetuating condition where poverty leads to situations that perpetuate poverty, making it difficult for individuals or communities to escape poverty.

Theory of Exploitation

A concept in Marxist economics that posits that capitalists extract surplus value from workers' labor, paying them less than the actual worth of their work.