A Normal Good Is One for Which

question 319

Multiple Choice

A normal good is one for which

• A) demand increases as income increases.
• B) demand increases as income decreases.
• C) the demand curve is horizontal.
• D) demand increases as the price of a substitute increases.

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Definitions:

Earn Per Hour

The rate at which an individual is compensated financially for each hour of work.

Wage

The compensation received by workers for their labor, typically quoted on an hourly, daily, or weekly basis.

Quantity of Labor

The total hours of labor provided by workers for the production of goods and services.

Theory of Education

The Theory of Education explores the processes and factors influencing learning, teaching, and the overall educational system.