If a Good Is an Inferior Good,then Its

question 115

Multiple Choice

If a good is an inferior good,then its

• A) demand curve will be upward sloping.
• B) income effect reinforces the substitution effect.
• C) income elasticity is negative.
• D) Engel curve cannot be drawn.

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Definitions:

Input

Inputs like workforce, raw materials, and financial assets employed in the process of manufacturing products or delivering services.

Factor Substitution Effect

The change in the use of factors of production, like labor and capital, resulting from changes in relative prices or technological advancements.

Productivity

The measure of the efficiency of production, often quantified as the ratio of output to input in the production process.

Productivity

Productivity measures the efficiency of production, often quantified as the ratio of output to inputs in the production process across a specific period.