If You Spend a Large Portion of Your Income on a Good

question 236

Multiple Choice

If you spend a large portion of your income on a good,

• A) supply of that good would be price elastic.
• B) demand for that good is more elastic than if you spent a smaller portion of your income on the good.
• C) supply of that good is price inelastic.
• D) demand for that good is less elastic than if you spent a smaller portion of your income on the good.
• E) the good must be able to be produced at a constant (or gently rising) opportunity cost.

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Definitions:

Unrealistically High

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A perception that one's employer has failed to fulfill one or more obligations within the unwritten agreement of the psychological contract.

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Commitments or assurances given by recruiters to potential employees, often relating to job responsibilities, compensation, or career development opportunities.

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An unwritten agreement that defines the mutual expectations, obligations, and benefits between an employer and an employee.