A Normal Good Is Defined by Economists to Be a Good

question 95

Multiple Choice

A normal good is defined by economists to be a good

• A) with a negatively-sloped demand curve.
• B) that is purchased by at least 75 percent of the population.
• C) that is bought by consumers with normal tastes.
• D) whose demand increases when incomes increase.
• E) whose demand decreases when incomes increase.

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Definitions:

Affirmative Covenants

Clauses in a loan agreement that require the borrower to perform certain actions to maintain the terms of the loan.

Borrower Must

Requirements or conditions that a borrower is obliged to meet in order to qualify for a loan or maintain its good standing.

Agency Cost

Agency cost refers to the expenses incurred due to the conflict of interest between shareholders and management within a company.

Principals

Fundamental truths or propositions that serve as the foundation for a system of belief or behavior or for a chain of reasoning.