If a Good Is Inferior in an Economic Sense, Income

question 239

Multiple Choice

If a good is inferior in an economic sense, income elasticity will:

• A) be less than one.
• B) exceed one.
• C) be zero.
• D) be inelastic.
• E) be negative.

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Definitions:

Overseas Marketing

The practice of promoting and selling products or services in foreign countries beyond the company's home market.

Revenue Tariff

A duty imposed on imported goods primarily to generate income for the government rather than to restrict imports or protect domestic industries.

Venetian Glass

A type of glass made in Venice, Italy, renowned for its craftsmanship, color, and intricate designs.

Service Tax

A tax levied by the government on service providers on certain service transactions, but is actually borne by the customers.