Which of the Following Statements Is FALSE

question 306

Multiple Choice

Which of the following statements is FALSE?

• A) An increase in income causes an increase in the demand for a normal good.
• B) An increase in income causes a decrease in the demand for an inferior good.
• C) A decrease in income causes the demand curve for a normal good to shift to the left.
• D) An increase in income causes the demand curve for an inferior good to shift to the right.

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Definitions:

Securities

Securities that signify ownership stakes in companies (equities), lending agreements with governments or businesses (bonds), or entitlements to ownership through options.

Financial Processes

The methods and procedures used by a company to manage its financial activities, such as budgeting, accounting, and investment management.

Capital

Refers to the financial resources available for use in the production of goods or the provision of services.

Sole Proprietorship

An enterprise that a single person owns and runs, where there's no legal separation between the proprietor and the enterprise itself.