A Good with an Income Elasticity of 0

question 131

Multiple Choice

A good with an income elasticity of 0.4 is:

• A) a luxury good.
• B) a normal good.
• C) an inferior good.
• D) a substitute good.

---

Definitions:

Public Service

Services provided by the government to its citizens, often focusing on essential services like healthcare, education, and security.

Maximized Government Participation

A policy or approach where the government actively engages in various sectors of the economy, often including owning or regulating businesses and industries.

Private Enterprise System

An economic system where private individuals or businesses own the means of production and operate for profit, often characterized by competition and market forces.

Entrepreneurs

People who establish, manage, and run companies while accepting higher-than-usual financial risks in the process.