A Commodity X Will Be Considered as a Normal Good

question 52

Multiple Choice

A Commodity X will be considered as a normal good if:

• A)the quantity of the good consumed decreases with an increase in income.
• B)the quantity of the good consumed increases with an increase in income.
• C)the quantity of the good consumed increases in the same proportion as the increase in income.
• D)the quantity of the good consumed reflects no change with a change in income.

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Definitions:

Short-Term Memory

The capacity for holding a small amount of information in mind in an active, readily available state for a short period of time.

George Miller

A cognitive psychologist best known for his theory that the capacity of human memory is approximately seven items, plus or minus two.

State Capital

The city or town that functions as the administrative seat of government for a state.

Semantic Memory

A type of long-term memory involving the capacity to recall words, concepts, or numbers, which is essential for the use and understanding of language.