An Inferior Good Is One for Which

question 101

Multiple Choice

An inferior good is one for which

• A) demand increases as income increases.
• B) demand decreases as income increases.
• C) the demand curve is vertical.
• D) the demand curve slopes up.

Distinguish between partial equilibrium analysis and general equilibrium analysis.

Comprehend the implications of the First and Second Welfare Theorems in the context of welfare economics.

Understand the impact of homothetic and Cobb-Douglas preferences on consumption allocations.

Recognize how different utility functions affect economic outcomes in a pure exchange economy.

---

Definitions:

Death

The termination of all biological functions that sustain a living organism, marking the end of life.

Soul

The spiritual or immaterial part of a human being or animal, often regarded as immortal.

Animism

Belief that all things possess a spirit.

Fundamentalist Ideals

Principles or beliefs held by individuals who advocate for a strict adherence to specific theological doctrines, usually within a religious context.