Which of the Following Is True of a Giffen Good

question 59

Multiple Choice

Which of the following is true of a Giffen good?

• A)It is a special case of an inferior good where the income effect is greater than the substitution effect and runs counter to it.
• B)It is similar to an inferior good,though the income effect is positive and greater than the substitution effect.
• C)It is similar to an inferior good,though the income effect is not as large for the Giffen good as it is for the inferior good.
• D)It is mostly prevalent in developing economies.

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Definitions:

Cognitive Behaviors Therapy

A type of psychotherapeutic treatment that helps patients understand the thoughts and feelings that influence behaviors, aimed at changing negative patterns to improve mental health.

Exposure Therapy

A psychological treatment method where individuals confront their fears in a controlled environment to reduce their anxiety over time.

Trauma Cues

External stimuli that remind an individual of past trauma, potentially triggering distress or a traumatic response.

Relaxation Techniques

Various practices aimed at reducing stress, tension, and anxiety, and promoting physical and mental well-being.