Higher Education Is a Normal Good

question 48

Multiple Choice

Higher education is a normal good. If its price falls

• A) the quantity demanded of higher education will fall.
• B) the substitution and income effects work in opposite directions.
• C) the income effect is negative.
• D) higher education will satisfy the law of demand.

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Definitions:

Mere Exposure Effect

A psychological effect in which people show a preference for items or concepts they recognize simply because they know them.

Two-factor Theory of Emotion

A psychological theory that proposes emotions are based on physiological arousal and cognitive labeling of that arousal.

Aerobic Exercises

Physical exercises that involve or improve oxygen consumption by the body, enhancing cardiovascular conditioning and endurance.

Romantic Feelings

Emotions associated with love, affection, and strong personal attachment toward another person, typically characterized by desire and intimacy.