Normal Goods Have Negative Income Elasticities of Demand, While Inferior

question 5

True/False

Normal goods have negative income elasticities of demand, while inferior goods have positive income elasticities of demand.

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Definitions:

Minimum Wage Law

Legislation establishing the lowest hourly wage that employers can legally pay their workers.

Unconstitutional

Something that does not conform to the principles or rules set out in a country's constitution, rendering it invalid or unenforceable.

Kelo v. City of New London

A U.S. Supreme Court case deciding on the use of eminent domain to transfer land from one private owner to another to further economic development.

Takings Clause

A clause within the Fifth Amendment to the U.S. Constitution that bars the government from appropriating private land for public benefit without providing adequate payment.