A Good Is an Inferior Good If the Consumer Buys

question 123

Multiple Choice

A good is an inferior good if the consumer buys less of it when

• A)his income rises.
• B)the price of the good rises.
• C)the price of a substitute good falls.
• D)his income falls.

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Definitions:

Federal Expenditures

Refers to the spending by the federal government, including spending on national defense, social security, and other public services.

National Debt

The total outstanding borrowing of a government, consisting of internal and external loans, accumulated over years of budget deficits.

Excise Taxes

Taxes imposed on specific goods or services, such as tobacco, alcohol, and gasoline, usually intended to discourage their use or generate revenue.

Federal Tax Revenue

The income collected by the federal government from taxes, including income taxes, payroll taxes, and corporate taxes, used to fund public services and obligations.