Economics 10 Q6 - YED

Economics 10 Q6 - YED

9th - 12th Grade

10 Qs

quiz-placeholder

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Economics 10 Q6 - YED

Economics 10 Q6 - YED

Assessment

Quiz

Financial Education

9th - 12th Grade

Easy

Created by

Marco Correa Barrera

Used 1+ times

FREE Resource

10 questions

Show all answers

1.

MULTIPLE CHOICE QUESTION

1 min • 1 pt

A YED greater than 1 indicates that a good is:

A necessity

An inferior good

A luxury good

A normal good

Answer explanation

Luxury goods have a YED greater than 1, meaning demand increases proportionately more than income.

2.

MULTIPLE CHOICE QUESTION

1 min • 1 pt

Which of the following is most likely to have a negative YED?

Designer handbags

Fast food

Organic produce

Public transportation

Answer explanation

Inferior goods, like public transportation, have a negative YED, as demand decreases when income rises.

3.

MULTIPLE CHOICE QUESTION

1 min • 1 pt

YED measures the responsiveness of:

Quantity demanded to changes in price

Quantity demanded to changes in income

Income to changes in demand

Price to changes in quantity demanded

Answer explanation

YED measures how demand responds to income changes, indicating whether goods are normal, luxury, or inferior.

4.

MULTIPLE CHOICE QUESTION

1 min • 1 pt

A normal good has a YED that is:

Greater than 1

Equal to 0

Positive but less than 1

Negative

Answer explanation

Normal goods have a positive YED, but less than 1 indicates that demand increases at a slower rate than income.

5.

MULTIPLE CHOICE QUESTION

1 min • 1 pt

Which of the following factors does not affect YED?

Necessity vs. luxury

The availability of substitutes

Consumer preferences

Income level

Answer explanation

YED relates to income changes, not the availability of substitutes, which affects price elasticity.

6.

MULTIPLE CHOICE QUESTION

3 mins • 1 pt

If income increases by 20% and demand for a good increases by 10%, the YED is:

2

0.5

1

-0.5

Answer explanation

YED = % change in quantity demanded ÷ % change in income = 10% ÷ 20% = 0.5.

7.

MULTIPLE CHOICE QUESTION

3 mins • 1 pt

A good has a YED of -0.8. If income decreases by 25%, the change in demand is:

20% increase

20% decrease

25% increase

25% decrease

Answer explanation

% change in demand = YED × % change in income = -0.8 × -25% = 20%.

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