When Income Increases from $30,000 a Year to $40,000 a Year

question 44

Multiple Choice

When income increases from $30,000 a year to $40,000 a year, the quantity demanded of weekend vacations by Sara increases from 2 a year to 5 a year. For Sara, the income elasticity of demand of weekend vacations is ________ and weekend vacations are ________ good.

• A) 1/3; a normal
• B) -4.5; an inferior
• C) 3; a normal
• D) 1/3; an inferior
• E) 4.5 a normal

Understand the principles and defenses related to negligence and liability including contributory negligence, modified comparative negligence, strict liability, and assumption of the risk.

Comprehend the legal concepts of assault, battery, and defamation, and the requirements to establish damages in defamation actions.

Identify and explain the legal obligations and duties that arise in specific scenarios including duty to rescue and liability in animal-related incidents.

Distinguish among different tort law objectives and how they apply in various legal situations.

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Definitions:

Real Hourly Wages

The hourly wage of workers adjusted for inflation, representing the purchasing power of the income.

Real Wages

Wages adjusted for inflation, giving a true measure of the purchasing power of earned income over time.

Hourly Wage

The amount of money paid to an employee for every hour worked.

Fringe Benefits

Nonwage compensation, mainly medical insurance, that workers receive from employers.