If a Good Has an Income Elasticity of −0

question 136

Multiple Choice

If a good has an income elasticity of −0.85, then it:

• A) is a normal good, and a necessity.
• B) is an inferior good.
• C) is a necessity, but may be normal or inferior.
• D) is a luxury.

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Definitions:

Volunteering

The act of offering one’s time and services to a cause or organization without receiving financial compensation.

Identity

A coherent organized sense of self that includes values, attitudes, and goals to which one is committed.

Intimacy

The feeling of close personal association and belonging, often involving both emotional and physical closeness.

Emerging Adulthood

A phase of the life span between adolescence and full-fledged adulthood, approximately ages 18 to 25, characterized by exploration of identity.