Assume That a Computer Is a Normal Good

question 131

Multiple Choice

Assume that a computer is a normal good. An increase in consumer income, other things being equal, would:

• A) cause an upward movement along the demand curve for computers.
• B) cause a downward movement along the demand curve for computers.
• C) shift the demand curve for computers to the left.
• D) shift the demand curve for computers to the right.

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Definitions:

Deferred Taxes

Taxes that are owed but not yet paid, arising from temporary differences between accounting and tax treatments of income and expenses.

Retrospective Adjustment

A change applied to the accounting records of prior periods to correct an error or implement a change in accounting principle.

Cumulative Effect

The aggregate impact of an accounting change or policy on a company's financial statements over time.

Average Cost

A method for inventory and cost of goods sold valuation, calculated by dividing the total cost by the number of items.