An Inferior Good Is a Good for Which Demand

question 208

Multiple Choice

An inferior good is a good for which demand

• A) increases when population increases.
• B) decreases when population increases.
• C) decreases when income increases.
• D) increases when income increases.

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Definitions:

Planning Budget

A budget prepared for a specific level of activity, used as a tool for decision making and planning.

Net Operating Income

A company's income after operating expenses are subtracted but before deducting interest and taxes, reflecting the profitability from core operations.

Planning Budget

A budget created for a specific level of activity, it helps in planning and controlling costs based on projected operational activities.

Net Operating Income

The profit a company makes from its normal business operations, calculated by subtracting operating expenses from operating revenues.