If an Increase in Income Results in an Increase in the Quantity

question 84

Multiple Choice

If an increase in income results in an increase in the quantity demanded for a product, the product is ________, and the value of the income elasticity of demand is ________.

• A) a normal good; positive
• B) a normal good, negative
• C) an inferior good; positive
• D) an inferior good; negative

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Definitions:

Service-Based Economy

An economy where the majority of growth, employment, and production is related to the provision of services rather than the manufacturing of goods.

Class Division

The separation of society into different socioeconomic levels, often leading to distinctions in lifestyle, opportunities, and privileges.

Unequal Rewards

A situation where benefits, compensation, or recognition are distributed unevenly among individuals or groups, often based on social status, gender, or race.

Electronic Cash Registers

These are devices used by retailers to calculate and record sales transactions, manage inventory, and handle cash. They have largely been replaced or augmented by more sophisticated point-of-sale systems.