An Inferior Good Is One for Which Demand Increases as

question 118

Multiple Choice

An inferior good is one for which demand increases as

• A)price decreases
• B)price increases
• C)income increases
• D)income decreases
• E)the price of a related good decreases

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Definitions:

Manufacturing

The process of converting raw materials or components into finished goods using tools, human labor, machinery, and chemical processing.

Export Promotion

A government strategy aimed at encouraging local producers to sell their goods and services abroad.

Import Substitution

An economic policy that aims to replace foreign imports with domestic production, often through the use of tariffs, quotas, and other trade barriers.

Economic Growth

An increase in the production of goods and services in an economy over a period, typically measured by the rise in real GDP.