When the Price of a Good Falls, Consumers Buy a Larger

question 155

Multiple Choice

When the price of a good falls, consumers buy a larger quantity because of the ________ effect and the ________ effect.

• A)substitution; income
• B)normal; inferior
• C)substitute; complement;
• D)supply; demand

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Definitions:

Criminal Extortion

involves obtaining something, especially money, through force or threats, and is considered a criminal act.

Sarbanes-Oxley Act

A U.S. law enacted in 2002 that aims to protect investors by making corporate disclosures more reliable and accurate.

Enron

A former American energy company known for its massive accounting fraud leading to its bankruptcy.

WorldCom

A major telecommunications company that was involved in a large-scale accounting scandal, leading to its bankruptcy in 2002.