If an increase in a consumer’s income causes the consumers to decrease her quantity demanded of a good, then the good is ?

Related Mcqs:

1. If an increase in a consumer’s income causes the consumer to increase his quantity demand of a good, then the good is ?

   A. a complementary good B. an inferior good C. a normal good D. a substitute good...

2. Assume that global recession causes the quantity of tin demanded to decrease by 4 million pounds at each price To maintain the price of tin at the target price you would ?

   A. sell 4 million pounds of tin B. sell 8 million pounds of tin C. buy 4 million pounds of tin D. buy 8 million pounds of tin...

3. Instead, assume that global economic expansion causes the quantity of tin demanded to increase by 4 million pounds at each price To maintain price of tin at the target price you would ?

   A. sell 4 million pounds of tin B. sell 8 million pounds of tin C. buy 4 million pounds of tin D. buy 8 million pounds of tin...

4. An increase in consumer income will increase demand for a _________ but decrease demand for a?

   A. substitute good, inferior good B. normal good inferior good C. inferior good normal good D. normal good, complementary good...

5. Average income increase from Rs20,000 p.a to Rs 22,000 p.a Quantity demanded per year increases 5000 to 6000 units. Which of the following is correct ?

   A. Demand is price inelastic B. The good is inferior C. Income elasticity is -2 D. The product is normal...

6. Refer to Exhibit 4. Suppose that the consumer must choose between buying socks and belts Also suppose that the consumer’s income is €100 If the price of a belt is €10 and the price of a pair of socks is €5, the consumer will choose to buy the commodity bundle represented b point ?

   A. Z B. X C. Y D. the optimal point cannot be determined from this graph...

7. When an increase in government purchases increases the income of some people, and those people spend some of that increase in income on additional consumer goods, we have seen a demonstration of ?

   A. The multiplier effects B. supply side economics C. None of these answers D. The crowding out effect...

8. The price decrease from Rs 2,000 to Rs 1,800 Quantity demanded per year increases 5000 to 6000 units. Which of the following is correct ?

   A. The price elasticity of demand is -2 B. The good is inferior C. Income elasticity is + 0.5 D. Income elasticity is + 2...

9. Refer to Exhibit 4, Suppose that the consumer must choose between buying socks and belts Also suppose that the consumer’s income is €100 Suppose that the price of a pair of socks falls from €5 to €2 The income effect is represented by the movement from point ?

   A. X to point Y B. X to point Z C. Y to point X D. Z to point X...

10. If the quantity of money demanded exceeds the quantity of money supplied then the interest rate will ?

    A. change in a certain direction B. remain constant C. fall D. rise...