Which of the Following Statements Is FALSE

question 384

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 a normal good, the income effect reinforces the substitution effect.
• C) For an inferior good, the income effect offsets the substitution effect.
• D) For an inferior good, the income effect is positive.

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Definitions:

Path-Goal Theory

A leadership theory that suggests a leader's behavior is contingent to the satisfaction, motivation, and performance of her or his subordinates.

Leadership Styles

The different approaches and techniques used by leaders to motivate, direct, and manage teams and organizations, ranging from authoritarian to democratic and transformational.

Participating Style

A leadership approach involving employees in decision-making processes and considering their opinions.

Leadership Recommended

Implies a suggestion or endorsement of specific leadership qualities or styles that are considered effective within a particular context.