What Is a Normal Good

question 146

Multiple Choice

What is a normal good?

• A)It is a good whose income elasticity of demand is less than zero.
• B)It is a good whose demand will rise as income rises.
• C)It is a good that has many substitutes.
• D)It is a necessity.

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Definitions:

Lucent Technologies

A former telecommunications company that was once a part of AT&T before being spun off and eventually merged with Alcatel SA to create Alcatel-Lucent.

Exxon

A multinational oil and gas corporation that is one of the world's largest publicly traded energy providers and chemical manufacturers.

Treasury Bond

Long-term, government-issued debt securities with a fixed interest rate, considered low-risk investments.

Ford

An American multinational automaker known for its production and sale of cars, trucks, and commercial vehicles.