Economics Multiple Choice Question – 16 November 2022

What is NOT held constant when calculating the income effect of a change in the price of a good?

Select ONE answer:

1. the consumer’s money income
2. the consumer’s preferences
3. the consumer’s real income
4. the prices of other goods

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Economics KS4 and KS5 classes.

The answer is 3

1. Not correct
2. Not correct
3. Correct
4. Not correct

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