The Income Effect of an Increase in the Price of Computers

question 81

Multiple Choice

The income effect of an increase in the price of computers may include all of the following except a decrease in

• A)the number of computers the consumer will purchase.
• B)other goods that the consumer will purchase.
• C)the consumer's actual, or nominal, budget.
• D)the consumer's real income.
• E)most goods that the consumer will purchase.

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Definitions:

Korsakoff Syndrome

A chronic memory disorder caused by severe deficiency of thiamine (vitamin B1), often associated with alcoholism.

Household Income

The combined gross income of all members of a household, which can include wages, salaries, pension, and other forms of income.

United States

A country in North America known for being the world's largest economy, with a federal system of government.

Discrimination

The practice of according individuals or groups inferior treatment in hiring, occupational access, education and training, promotion, wage rates, or working conditions even though they have the same abilities, education, skills, and work experience as other workers.