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:

Performance Standards

Established benchmarks used to measure the quality, efficiency, or effectiveness of an individual's or organization's work.

Employment Discrimination

Unfair treatment of employees or job applicants based on race, gender, age, religion, nationality, disability, or sexual orientation rather than their qualifications or performance.

Job-Relevant

Pertains to aspects or factors that are directly applicable or significant to one's occupation or position.

Industrial Relations

The study and management of employment relationships, including interactions among employers, employees, and the institutions and laws that govern work environments.