The Income Effect for an Inferior Good

question 400

Multiple Choice

The income effect for an inferior good

• A) is negative.
• B) is zero.
• C) is positive.
• D) could be negative, zero, or positive.

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Definitions:

Young Adult

A person in their late teens to early twenties, often considered a critical developmental stage transitioning from adolescence to full adulthood.

Bulimia

A serious eating disorder characterized by episodes of binge eating followed by purging to prevent weight gain.

Exposure

In health contexts, exposure refers to coming into contact with substances, diseases, or environmental conditions that can lead to health effects.

Response Prevention

A treatment technique, often used for OCD, where the individual refrains from performing their habitual response to a feared stimulus.