If Good Z Has an Income Elasticity of 1

question 172

Multiple Choice

If good Z has an income elasticity of 1.0, then demand for good Z is income __________ and the good is __________.

• A)inelastic, normal
• B)inelastic, inferior
• C)elastic, normal
• D)elastic, inferior
• E)unit elastic, normal

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Definitions:

Natural Resource Base

The foundational elements provided by the natural environment that support human society and economic activities, including water, soil, minerals, and forests.

Cost-Benefit Analysis

A systematic approach to estimating the strengths and weaknesses of alternatives used to determine options which provide the best approach to achieve benefits while preserving savings.

Economically Efficient

A situation where resources are allocated in a way that maximizes the net benefit to society or minimizes wastage.

Environment Damaged

A state where natural habitats are compromised due to pollution, deforestation, or other harmful human activities.