The Amount of Compensation Associated with the Income Effect of a Price

question 70

Multiple Choice

The amount of compensation associated with the income effect of a price change is called:

• A) a compensation variation.
• B) an income effect.
• C) consumer surplus.
• D) a subsidy.

---

Definitions:

Citizen Complaints

Refers to grievances raised by individuals or groups regarding public services, policies, or the conduct of officials, typically addressed to governmental or regulatory bodies.

Serious Bias

A significant and unsubstantiated favoritism or prejudice towards a person, group, or idea, often leading to unfair treatment.

Personal Competence

An individual’s ability to effectively manage their goals, tasks, and challenges using personal skills and resources.

Jack Katz

A sociologist known for his work in the study of emotions, moral life, and the social foundations of crime.