Joe Consumes 10 Units of Food and 12 Units of Clothing.Since

question 158

Multiple Choice

Joe consumes 10 units of food and 12 units of clothing.Since food is an inferior good,a gift to Joe of a $12 gift certificate at a clothing store will:

• A) induce Joe to eat more than 10 units of food.
• B) definitely make Joe better off than a gift of $12 in cash.
• C) definitely make Joe worse off than a gift of $12 in cash.
• D) None of the preceding statements is correct.

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Definitions:

Total Fertility Rate

The average number of children per lifetime birthed by a nation’s women.

Replacement Rate

The total fertility rate necessary to offset deaths in a country and thereby keep the size of its population constant (without relying on immigration). For most countries, a total fertility rate of about 2.1 births per woman per lifetime.

Per-Capita Consumption

The average consumption of a good or service per person within a particular population or area.

Total Fertility Rate

A demographic measure that estimates the average number of children a woman will have over her childbearing years, given current birth rates.