If a Good Is Considered a Normal Good,the Demand Curve

question 45

Multiple Choice

If a good is considered a normal good,the demand curve will shift ________ when income increases because ________.

• A) right; the income and substitution effects move in the same direction.
• B) right; the income and substitution effects move in the opposite direction.
• C) left; the income and substitution effects move in the same direction.
• D) left; the income and substitution effects move in the opposite direction.

Identify key organizations that set ethical standards for supply management.

Evaluate the effectiveness of various e-procurement strategies.

Understand negotiation strategies and their application in supplier relationships.

Grasp the importance of make-or-buy decisions and the reasons underlying them.

---

Definitions:

Government Spending

Expenditure by the government in any given period, typically on public services, defense, infrastructure, and social welfare programs.

Regulation

Rules or directives made and maintained by an authority to regulate behavior, usually in the context of business, financial markets, or a profession.

Expansionary Monetary Policy

A central bank policy aimed at increasing the money supply to stimulate economic growth by lowering interest rates and increasing liquidity.

Economic Growth

An increase in the production of goods and services in an economy over a period of time, indicating improvement in living standards.