Abnormal Goods

Q.

What Are the Two Laws of Production?

Q.

Define direct demand

Q.
In case of normal goods, income effect is positive, while in case of inferior goods, it is negative.

1. True
2. False

Q.

The following headline appeared in the Economic Times: "Import duty on crude and refined edible oil up by 5% " Use a diagram and economic theory to analyse the impact of the statement on the supply of crude and refined edible oil in the domestic market.

Q. In the case of inferior goods, the income elasticity of demand is ______.

1. infinitive
2. positive
3. negative
4. unitary

Q. In the case of an inferior goods, the income elasticity of demand is?

1. Negative
2. Positive
3. Infinite
4. Zero

Q. When increase in his Real Income induces a Consumer to buy more of a Commodity whose prices has fallen, it is called -

1. Substitution Effect
2. Inducement Effect
3. Income Effect
4. Utility Effect