If a Good Has an Income Elasticity of 0

question 141

Multiple Choice

If a good has an income elasticity of 0.18,then it is:

• A) a normal good, and a necessity.
• B) a normal good, and a luxury good.
• C) an inferior good, and a necessity.
• D) an inferior good, and a luxury.

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Definitions:

Freudian Component

Elements of Sigmund Freud's psychoanalytic theory which include the id, ego, and superego, responsible for different aspects of human personality and behavior.

Ego

A component of Sigmund Freud's model of the psyche that mediates between the demands of the id, the superego, and the external world, playing a crucial role in decision making and reality testing.

Unconscious

Refers to the part of the mind that contains thoughts, memories, and desires not within the sphere of current awareness but that nonetheless influence behavior.

Preconscious

A part of the mind that contains thoughts, feelings, and memories that are not currently in conscious awareness but can easily be brought to consciousness.