For Most Goods,purchases Tend to Rise with Increases in Buyers

question 94

Multiple Choice

For most goods,purchases tend to rise with increases in buyers' incomes and to fall with decreases in buyers' incomes.Such goods are known as:

• A)inferior.
• B)direct.
• C)normal.
• D)indirect.

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Definitions:

Economic Integration

Occurs when two or more nations join to form a free-trade zone.

Free-Trade Zone

A specific area within a country where goods may be imported, handled, manufactured, or reconfigured without direct intervention by the customs authorities, often to encourage trade and investment.

Acquired Comparative Advantage

An advantage gained by a country or firm through learning, innovation, and investment, as opposed to natural endowments.

Quota

A government-imposed trade restriction that limits the number or monetary value of goods that can be imported or exported.