If a Good Has an Income Elasticity of 1

question 127

Multiple Choice

If a good has an income elasticity of 1.83,then it:

• A) is a normal good, and a necessity.
• B) is an inferior good, and a necessity.
• C) probably has a lot of close substitutes available.
• D) is a luxury.

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Definitions:

Path-goal Theory

A leadership theory that states the leader's job is to assist followers in attaining their goals and to provide direction or support needed to ensure their goals are compatible with the objectives of the group or organization.

Supportive Style

A manner or approach characterized by offering encouragement, validation, and assistance, often used in management or interpersonal relationships to foster growth and development.

Social Status

The position or rank of a person or group within the society, often determined by wealth, occupation, education, or family lineage.

Leadership Grid

A model that plots leadership styles along axes of concern for people and concern for production to help identify and develop leadership behaviors.