A Normal Good Is One for Which

question 319

Multiple Choice

A normal good is one for which

• A) demand increases as income increases.
• B) demand increases as income decreases.
• C) the demand curve is horizontal.
• D) demand increases as the price of a substitute increases.

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Definitions:

Natural Monopolies

A natural monopoly occurs when a single firm can supply a good or service to an entire market at a lower cost than what would be possible if there were multiple firms operating in the market, usually due to high fixed costs or unique resource requirements.

Occupational Safety

The discipline focused on protecting the safety, health, and welfare of people engaged in work or employment.

Social Regulation

Rules designed to protect the public interest by controlling how businesses operate, focusing on issues like health, safety, and the environment.

Industrial Regulation

Government policies and rules that oversee the operations, standards, and competitive practices of businesses within specific industries.