If the Income Elasticity of a Good Is Positive, We

question 91

Multiple Choice

If the income elasticity of a good is positive, we can conclude that the good is

• A) an inferior good.
• B) a normal good.
• C) a luxury good.
• D) a necessity.

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Definitions:

Stock Dividend

A dividend payment made to shareholders in the form of additional shares of stock rather than cash.

Corporation's Directors

Individuals elected by a corporation's shareholders to oversee the management and make major business decisions on behalf of the shareholders.

Stockholders

Individuals or entities that own one or more shares of stock in a corporation, thereby holding a portion of the company's ownership.

Paid-in Capital

The amount of money that shareholders have invested in a company through the purchase of stock, excluding the par value of the shares.