If John Purchases 10 Percent More Compact Discs When His

question 267

Multiple Choice

If John purchases 10 percent more compact discs when his income increases 5 percent, then:

• A) his total expenditure on compact discs will fall as his income increases.
• B) compact discs would be classified as an inferior good.
• C) compact discs would be price elastic.
• D) compact discs would be income inelastic.
• E) compact discs would be income elastic.

---

Definitions:

Sources Of Wealth

The origins and means through which individuals or societies acquire economic resources and increase their financial assets, including labor, investment, entrepreneurship, and natural resources.

Colonial Nations

Refers to countries that were established or expanded by conquering and governing foreign territories, often characterized by the exploitation of resources and imposition of the colonizer's culture on the indigenous population.

Underdeveloped Colonies

Territories governed by foreign powers that experienced economic exploitation and insufficient investment in their infrastructure and social systems.

Economic Development

involves the process of improving the economic, political, and social well-being of a community or country, through strategies that may include industrialization, technology advancement, and improvements in living standards.