An Inferior Good Is

question 9

Multiple Choice

An inferior good is

• A) one whose demand curve will shift rightward as incomes rise.
• B) one whose price and quantity demanded vary directly.
• C) one that has not been approved by the Federal Food and Drug Administration.
• D) not accurately defined by any of these statements.

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Definitions:

Maturity Date

Maturity Date is the specified date on which the principal amount of a loan, bond, or other financial instrument is due to be repaid.

Note Receivable

A note receivable is an amount of money owed to a business or individual that is evidenced by a written promissory note specifying the terms of payment.

Interest Due

Interest due refers to the amount of interest payment that is owed but not yet paid by a borrower to a lender by the due date.

Dishonoring a Note

The failure to pay a promissory note when due, which can result in legal action and damage to the borrower's creditworthiness.