--%>

Problem on superior or luxury goods

The Income effects will be most strongly positive for: (1) Normal goods. (2) Necessities. (3) Superior or luxury goods. (4) Substitutes and much negative for the complements.

Find out the right answer from the above options.

   Related Questions in Macroeconomics

  • Q : Market system The market system's

    The market system's answer to the fundamental question "How will the system promote progress?" is essentially:

  • Q : Physical quality of life index DISCUSS

    DISCUSS the experience of high GNP countries and low GNP with regard to PQLI.

  • Q : Business fixed investment-Inventory

    Describe the following terms: (i) Business fixed investment (ii) Inventory Investment (iii) Residential construction Investment (iv) Public Investment.

  • Q : Meaning of Fiscal policy Meaning of

    Meaning of Fiscal policy:Fiscal policy is the set of decisions and principles of a government regarding the extent of public expenses and mode of financing them. It is about the attempt of g

  • Q : Surplus of AD over AS-Inflationary gap

    Does a surplus of AD over AS always entail a condition of inflationary gap? Answer: No. Inflationary gap takes place only if AD > AS equivalent to full employmen

  • Q : Are government budget scarcities always

    ‘The country is at present in recession and this has led to worse tax revenue and high expenses. The effect is a huge deficit. The government decides to increase taxes and lower government expenses. Is this an excellent idea?’

  • Q : Calculating exchange rate 10 US dollars

    10 US dollars are exchanged for 500 Indian rupees. Calculate the exchange rate for Indian currency? Answer: $1 = 500/10 = Rs.50, that is, $1 = Rs. 50

  • Q : Conditions through which the supply

    What are the conditions through which the supply curve will shift?

  • Q : Why value of MPC is not greater than one

    Why the value of MPC is not greater than 1? Answer: This is because change in consumption can never be more than change in income.

  • Q : Liability of tax problem If the

    If the liability to give a tax is on one person and the burden of tax fall on some other person, state the kind of tax? Answer: These are indirect taxes like sales