If a Good Which Is Important for Welfare Sells for a Lower

question 73

Multiple Choice

If a good which is important for welfare sells for a lower price than one which is less important for welfare, we are describing:

• A)an inferior good.
• B)marginal consumer surplus.
• C)the paradox of value.
• D)the substitution effect.
• E)total utility.

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Definitions:

Positive Correlation

A relationship between two variables where an increase in one variable is associated with an increase in the other.

Negative Correlation

Negative Correlation refers to a relationship between two variables where one variable increases as the other decreases, and vice versa.

Null Relationship

indicates a situation where no association is found between two variables being studied.

Internal Reliability

When all of the items on a questionnaire measure the same thing.