Higher Education Is a Normal Good

question 479

Multiple Choice

Higher education is a normal good. If its price falls,

• A)the quantity demanded of higher education will fall.
• B)the substitution and income effects work in opposite directions.
• C)the income effect is positive.
• D)higher education will be a Giffen good.

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Definitions:

G7 Nation

Refers to a group of seven major advanced economies: Canada, France, Germany, Italy, Japan, the United Kingdom, and the United States, which discuss and collaborate on economic policies.

Computer-Related Industries

Sectors of the economy that involve the development, manufacturing, or provision of computer hardware, software, and related services.

Status Symbols

Objects or signs that signify the social status, wealth, or prestige of the individual possessing or displaying them.

Reallocation Spending

the process of shifting funds from one category of expenses to another, typically in response to changing priorities or circumstances.