If the Demand for a Good Increases Because Consumer Income

question 406

Multiple Choice

If the demand for a good increases because consumer income increases, the good is a(n) :

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

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Definitions:

Land

A real estate property, constituting the earth's surface with specific boundaries, not including any structures unless specified.

Noncumulative

Describes preference shares where the right to dividend payments does not accumulate if the dividend is not paid in any year.

Nonparticipating

Describes an insurance policy where the policyholder does not receive dividends or refunds from the insurer's surplus.

Preferred Stock

A type of stock that provides dividends before any dividends are provided to common stockholders and typically has rights to assets over common stock in the event of a company liquidation.