If a Good Is a Normal Good, an Increase in Income

question 94

Multiple Choice

If a good is a normal good, an increase in income will

• A) decrease the quantity demanded of the good.
• B) increase the demand for the good.
• C) cause the demand curve for the good to shift to the left.
• D) cause a movement down along the demand curve.

Appreciate the concept of LMX differentiation and its impact on group dynamics and performance.

Identify and classify costs into variable and fixed categories.

Understand the concept of marginal cost and its calculation.

Comprehend the law of diminishing marginal returns and its impact on production.

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Definitions:

Desired Behaviour

The specific actions or reactions expected from employees that are aligned with organizational goals and values.

Instrumentality

The perceived relationship between performance and the attainment of certain outcomes, key to understanding motivation in expectancy theory.

Expectancy

In the context of motivation, expectancy refers to an individual's belief that a particular effort will lead to a desired performance level.

Valence

In motivation theory, the value an individual places on the expected outcome of a particular course of action.