Which of the Following Is Not a Common Characteristic of IACs

question 24

Multiple Choice

Which of the following is not a common characteristic of IACs?

• A) Market-based economies.
• B) Large stocks of technologically advanced capital.
• C) Well-educated labor.
• D) Low per capita energy consumption.

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Definitions:

Substitution Effects

The substitution effect occurs when consumers replace more expensive items with less costly alternatives as prices rise.

Income Effect

The change in an individual's consumption resulting from a change in their income.

Normal Good

A good for which demand increases as the income of the consumer increases, showing a positive relationship between income and demand.

Income Effect

The impact of income fluctuations on an individual or an economy on the quantity of goods or services that is demanded.