If a 5 Percent Increase in Consumer Incomes Leads to a 10

question 14

Multiple Choice

If a 5 percent increase in consumer incomes leads to a 10 percent increase in the quantity demanded for a good, the good is a(n) _________ good with an income elasticity of________ .

• A)normal; 2.0
• B)inferior; - 0.50
• C)inferior ; 2.0
• D)normal; 0.50

---

Definitions:

Account Receivable

Money owed to a company by its clients or customers for goods or services delivered or used but not yet paid for.

Internal Control

Methods and rules a company adopts to maintain the accuracy of financial and accounting data, encourage responsibility, and stop fraudulent activities.

Establishing Control Procedures

The process of implementing policies and procedures to ensure that an organization's objectives are achieved efficiently and effectively, reducing the risk of fraud or error.