If a Household Increases Its Consumption of a Good by 10

question 178

Multiple Choice

If a household increases its consumption of a good by 10 percent when its income increases by 5 percent,then the good is

• A)an inferior good.
• B)a luxury.
• C)a necessity.
• D)both an inferior good and a necessity.
• E)an unclassified good.

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Definitions:

Congressional Powers

The specific legal authorities granted to the United States Congress by the Constitution, including taxation, regulation of commerce, and the declaration of war.

Customs Service

A government agency responsible for regulating the importation and exportation of goods, including the collection of tariffs and the enforcement of trade laws.

Imported Vitamin

A nutrient or supplement that is produced abroad and brought into a country for consumption.

Duty

A moral or legal obligation; in legal terms, it often refers to the responsibility one party has to act in a certain way toward others.