If an Increase in Consumer Incomes Causes the Demand Curve

question 67

Multiple Choice

If an increase in consumer incomes causes the demand curve for product Z to shift to the left, then it can be said that product Z is a(n) :

• A)normal good.
• B)luxury good.
• C)inferior good.
• D)inexpensive good.

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Definitions:

Direct Labor Cost

The expense associated with employees who are directly involved in the production process.

Net Operating Income

A financial metric that calculates a company's profitability by subtracting operating expenses from its operating income.

Variable Costing

A method of costing that includes only variable production costs (costs that vary with production volume) in the cost of goods sold and excludes fixed manufacturing overhead.

Net Operating Income

Earnings derived from a company's regular business activities, excluding deductions of interest and taxes.