If a Good Has an Income Elasticity of 0

question 43

Multiple Choice

If a good has an income elasticity of 0.18, then it is a(n) _____ good and a _____.

• A) normal; necessity
• B) normal; luxury
• C) inferior; necessity
• D) inferior; luxury

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Definitions:

Violence

The intentional use of physical force or power, threatened or actual, against oneself, another person, or against a group or community, which results in or has a high likelihood of resulting in injury, death, psychological harm, maldevelopment, or deprivation.

High Pressure System

A meteorological term referring to an area where the atmospheric pressure is higher than the surrounding areas, often associated with calm and clear weather.

Cold

Describes a low temperature environment or the feeling experienced when exposed to such conditions.

Original Medicare

A federal health insurance program in the United States for people who are 65 or older, certain younger people with disabilities, and people with End-Stage Renal Disease, consisting of Part A (hospital insurance) and Part B (medical insurance).