Normal Goods

question 16

Multiple Choice

Normal goods

• A) have positive income elasticity of demand.
• B) have negative income elasticity of demand.
• C) have negative elasticity of supply.
• D) are sometimes also inferior goods.
• E) do not have elasticity of demand.

Identify barriers to the implementation of evidence-based policies.

Distinguish between different types of policies based on their objectives and targeted issues.

Understand the role and application of policy assessment tools such as matrices.

Appreciate the value of evidence and theoretical, professional, or moral grounds in defending policies.

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Definitions:

Output Per Worker

The average quantity of goods and services produced per employee in a given time period.

Economic Growth

An increase in the production of goods and services in an economy over a period of time, often measured by GDP growth.

Simon Kuznets

A Ukrainian-American economist who made significant contributions to the study of economic growth, the development of the concept of Gross National Product, and the statistical analysis of economic cycles.

Automobile Industry

A sector of the economy that deals with the design, production, and selling of motor vehicles.