CA Foundation · Economics · Snob, Bandwagon, or Veblen Effect

Exercise and reference answers

Questions

1. Items

   1. Bandwagon effect
   2. Substitution effect
   3. Snob effect
   4. Veblen effect

   Reason

   Substitution effect is part of the Law of Demand; the others are special demand effects.

   Odd item

   Substitution effect

2. Items

   1. Demonstration
   2. Bandwagon
   3. Marginal Utility
   4. Snob

   Reason

   Marginal Utility belongs to consumer theory; the others are psychological demand effects.

   Odd item

   Marginal Utility

3. Items

   1. Normal Good
   2. Inferior Good
   3. Giffen Good
   4. Public Good

   Reason

   Public Goods are classified by excludability and rivalry; the others are by income response.

   Odd item

   Public Good

4. Items

   1. Income Statement
   2. Demand Curve
   3. Supply Curve
   4. Demand Schedule

   Reason

   Income Statement is an accounting document; the others are economics tools.

   Odd item

   Income Statement

Instructions

Tap the term that does not belong.