An Inferior Good Is a Good

question 139

Multiple Choice

An inferior good is a good:

• A) that has low quality.
• B) that consumers purchase less of when their incomes are higher.
• C) that consumers purchase more when their incomes are higher.
• D) of high quality.

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Definitions:

Cross Default

A provision in a loan agreement that triggers a default under the agreement if the borrower defaults on another debt obligation.

Compliance Default

Compliance default occurs when a party fails to act in accordance with set guidelines, rules, or laws, potentially leading to legal consequences.

Stock Options

Options granted by a company to its employees as a form of incentive compensation allowing them to buy shares at a specific price for a certain period.

Market Price

The present cost for purchasing or selling an asset or service in a market driven by competition.