Normal Goods Have Negative Income Elasticities of Demand, While Inferior

question 5

True/False

Normal goods have negative income elasticities of demand, while inferior goods have positive income elasticities of demand.

---

Definitions:

GAAP

The standard set of guidelines for financial accounting that are widely accepted in a particular jurisdiction, known as Generally Accepted Accounting Principles.

IFRS

International Financial Reporting Standards, a set of accounting standards developed by the International Accounting Standards Board.

Debit And Credit Rules

The guidelines used in double-entry bookkeeping where for every debit entry, there must be a corresponding credit entry, and vice versa, to ensure the accounting equation is always balanced.

Trial Balance

A bookkeeping worksheet in which the balances of all ledgers are compiled into debit and credit account columns to check the accuracy of financial records.