An Inferior Good Has an Income Elasticity of Demand That

question 120

Multiple Choice

An inferior good has an income elasticity of demand that is

• A) positive.
• B) negative.
• C) positive but less than 1.
• D) zero.

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Definitions:

Petty Cash Account

A small amount of cash kept on hand in a business for minor expenditures.

Internal Control System

Strategies and measures put in place by a firm to maintain the honesty of its financial and accounting records, promote responsible management, and deter fraudulent activities.

Single Employee

Refers to an individual worker within an organization, focusing on aspects related to their employment status or conditions.

Compensating Balance

A minimum cash balance required by some banks to be maintained in a bank account.