What Is a Normal Good

question 169

Multiple Choice

What is a normal good?

• A)It is a good whose income elasticity of demand is < 1.
• B)It is a good whose quantity demanded will rise as income rises.
• C)It is a good which has many substitutes.
• D)It is a good whose income elasticity is > 1.

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Definitions:

Debt Securities

Financial instruments representing a loan made by an investor to a borrower, typically corporate or governmental, which include terms related to the amount, interest rate, and maturity date.

Maturity Value

The amount payable to the holder of a financial instrument at its maturity date, often the principal plus any final interest payment.

Owner Relationship

The legal and operational connections and responsibilities between the owner(s) and their business entity.

Short-Term Investments

Investments that are typically held for one year or less, intended for quick gains or temporary cash investment.