Suppose an Individual Experiences a Permanent Increase in Income

question 48

Multiple Choice

Suppose an individual experiences a permanent increase in income. As a result of this increased income, further assume that the individual eats dinner at restaurants more frequently each month. This information suggests that dinners at restaurants for this individual are

• A) an inferior good.
• B) a substitute good.
• C) a normal good.
• D) both complimentary and inferior.

Understand the concept of Universal Basic Income (UBI) and identify arguments for and against its implementation.

Analyze the effects of discrimination on employment, income distribution, and the overall economy.

Recognize different models of economic discrimination, such as the crowding model, and their implications.

Interpret data and diagrams related to income distribution, economic discrimination, and employment patterns.

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Definitions:

Retained Earnings

The amount of net income retained in the corporation.

Cash Dividends

Distributions of profits by a company to its shareholders in the form of cash.

Investing Activities

Financial transactions related to the acquisition or disposal of long-term assets and other investments not included in cash equivalents.

Loans Receivable

Loans receivable are amounts owed to a lender by borrowers, recognized as assets on the lender's balance sheet.