An Inferior Good Is Distinguished by a

question 211

Multiple Choice

An inferior good is distinguished by a

• A) negative price elasticity of demand.
• B) positive price elasticity of demand.
• C) positive income elasticity of demand.
• D) negative income elasticity of demand.

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Definitions:

Capital Contributions

Monetary or non-monetary assets that are provided to a company by its owners or shareholders to increase its equity.

Capital Account

An account on a country's balance of payments that records transactions involving the acquisition or disposal of assets and liabilities.

Income Distribution

The manner in which total income is spread amongst the shareholders, partners, or other stakeholders in a company or economy.

Net Income

The total profit of a company after all revenues, expenses, taxes, and dividends have been deducted.