Which of the Following Statements Is FALSE

question 13

Multiple Choice

Which of the following statements is FALSE?

• A) When the relative price of a good falls, the substitution effect always leads the consumer to substitute more of that good for the other good.
• B) For an inferior good, the income effect is positive.
• C) For an inferior good, the income effect offsets the substitution effect.
• D) For a normal good, the income effect reinforces the substitution effect.

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Definitions:

Position

one's status, rank, or standing in a social or professional context, or the placement or arrangement in a physical space.

Time Periods

Distinct intervals into which time is divided for the purpose of historical or scientific analysis.

Personality Change

The alteration or development in an individual's personality attributes over time, potentially due to experiences or circumstances.

Collective Unconscious

A concept introduced by Carl Jung that describes the segment of the subconscious mind originating from inherited memories and experiences shared across the human race.