A Normal Good Is One

question 32

Multiple Choice

A normal good is one

• A)for which demand does not vary with household income.
• B)that normal people consume.
• C)that everyone normally consumes.
• D)for which demand varies inversely with household income.
• E)for which demand varies directly with household income.

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Definitions:

Net Income

The amount of profit remaining after all expenses, taxes, and costs have been subtracted from total revenue.

Dividends Declared

Profit distributed to shareholders that the company's board of directors has committed to pay out.

Shareholders' Equity

The residual interest in the assets of a corporation after deducting its liabilities; often referred to as stockholders' equity or owners' equity.

Owners

Individuals or entities that hold ownership in a company, possessing rights to its assets and profits.