When the Income-Consumption Curve Is Backward-Bending to the Left,the Good

question 76

Multiple Choice

When the income-consumption curve is backward-bending to the left,the good represented on the X-axis must be _____.

• A)a normal good
• B)an inferior good
• C)a Giffen good
• D)an economic bad

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Definitions:

Financial Leverage

Applying borrowed resources to escalate the potential profits of an investment.

EPS

Earnings Per Share, a measure of a company's profitability that divides its net profit by the number of outstanding shares.

ROE

Return on Equity; a measure of financial performance calculated by dividing net income by shareholders' equity, indicating how efficiently a company uses its assets to generate profit.

ROCE

Return on Capital Employed, a financial ratio that measures a company's profitability and the efficiency with which its capital is used.