If the Demand for Personal Computers Increases as the Result

question 1

Multiple Choice

If the demand for personal computers increases as the result of an increase in income, _____

• A) personal computers must be a normal good.
• B) personal computers must be an inferior good.
• C) personal computers must be a complementary good.
• D) the substitutes for personal computers must be inferior goods.
• E) the complements for personal computers must be inferior goods.

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Definitions:

Overhead Budget

A financial plan that estimates the expected overhead costs for a business over a certain period.

Indirect Materials

Materials used in the production process that cannot be directly linked to specific products or are not significant enough to warrant tracing to individual products, such as lubricants for machinery.

Indirect Labour

Labor costs associated with employees who support the production process but do not directly work on the production of goods or services, such as maintenance staff and supervisors.

Program Budgeting

A budgeting system that allocates resources based on the planning and control of specific programs or projects.