Which Characterization Applies to a Normal Good

question 125

Multiple Choice

Which characterization applies to a normal good

• A)The average consumer chooses to consume the good at a normal level.
• B)The average consumer chooses to consume a normal good over a substitute good.
• C)An increase in income increases consumption of the good.
• D)An increase in income decreases consumption of the good.

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Definitions:

Working Capital Ratio

A financial metric measuring a company's ability to cover its short-term liabilities with its short-term assets.

Accounts Receivable

Money owed to a company by its customers for goods or services that have been delivered but not yet paid for.

Net Sales

the revenue generated from the sale of goods or services, after deducting returns, allowances for damaged or missing goods, and discounts.

Acid Test Ratio

A financial metric used to determine a company's liquidity by comparing its most liquid assets (excluding inventory) to its short-term liabilities.