The Demand for Normal Goods Obeys the Law of Demand

question 33

Multiple Choice

The demand for normal goods obeys the law of demand because of:

• A) the substitution effect.
• B) the income effect.
• C) risk-aversion.
• D) both the substitution and income effects.

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Definitions:

Fraudulent Transactions

Financial transactions made with the intention of deceiving or defrauding others.

ATM Card

A plastic card issued by a bank, allowing the cardholder to withdraw cash, make deposits, or access account information at Automated Teller Machines.

Fraudulent Charge

Unauthorized transaction on a payment card or account, made without the owner's permission.

Overdraft Protection

Overdraft protection is a banking service that prevents checks, ATM withdrawals, and other transactions from causing an account's balance to fall below zero by advancing money or covering the shortfall.