An Inferior Good Is One in Which

question 243

Multiple Choice

An inferior good is one in which

• A)the average consumer chooses not to consume.
• B)the good is not equally valued by all consumers.
• C)an increase in income increases consumption of the good.
• D)an increase in income decreases consumption of the good.

---

Definitions:

Financial Statements

Records that outline the financial activities and condition of a business, including the balance sheet, income statement, and cash flow statement.

Expansion Project

An investment endeavor aimed at increasing the size, capacity, or capability of an existing facility or system to accommodate growth.

Interest Payments

Interest payments are the costs incurred by an entity for borrowing money, which are paid at agreed intervals to the lender.

Bond Indenture

A legal document detailing the terms and conditions of a bond issue, including the obligations of the issuer and the rights of the bondholders.