If a 5 Percent Increase in Income Brings About a 10

question 306

Multiple Choice

If a 5 percent increase in income brings about a 10 percent decrease in the demand for a good,then the

• A) good is a normal good.
• B) good is an inferior good.
• C) income elasticity of demand is 0.5.
• D) income elasticity of demand is 2.0.
• E) income elasticity of demand is 5.0.

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Definitions:

Increased Risk Test

The increased risk test is a legal principle used to determine liability in negligence cases, examining whether the defendant's actions significantly elevated the risk of harm to the plaintiff.

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An insurance type that offers medical benefits and substitutes for lost wages to workers hurt while performing job duties.

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The essential characteristics and terms of a job, including duties, working conditions, and the employment agreement.

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A specialized insurance provider that offers workers' compensation insurance to employers, covering workplace injury or illness.