An Inferior Good Is a Product

question 70

Multiple Choice

An inferior good is a product:

• A) for which demand increases as income increases.
• B) for which there is no demand.
• C) for which demand decreases as income increases.
• D) that has an upward sloping demand curve.

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Definitions:

Share Capital

The funds raised by a company through the sale of its shares, representing the equity stake of its shareholders.

Retained Earnings

The portion of a company's profits that is kept or retained rather than paid out as dividends to shareholders, often used for reinvestment.

Retained Earnings

Funds that a company has decided to keep for reinvestment or other purposes instead of distributing as dividends.