When the Income-Consumption Curve Is Upward-Sloping to the Right,the Good

question 92

Multiple Choice

When the income-consumption curve is upward-sloping to the right,the good represented on the X-axis must be _____.

• A)a normal good
• B)an inferior good
• C)a Giffen good
• D)an economic "bad"

---

Definitions:

Economic Profits

Profits calculated by subtracting both the explicit and implicit costs from a firm's total revenues; a measure of earnings exceeding the opportunity costs.

Entry Of Firms

The process by which new companies enter into an industry, adding to the competition.

Government Subsidies

Financial support provided by the government to organizations, businesses, or individuals, aimed at promoting certain activities or reducing costs.

Long-Run Equilibrium

A situation where all factors of production and costs are variable, and all firms in a market are earning zero economic profit, indicating no incentive for market entry or exit.