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:

Financial Institutions

Entities such as banks, credit unions, and insurance companies that provide financial services including loans, deposits, investments, and currency exchange.

Monopolization

The process or state in which a single entity gains exclusive control over a commodity, market, or service.

Economic Goals

The objectives that guide the economic decisions and policies of individuals, businesses, and governments, typically including growth, stability, and equity.

Neoliberalism

A political and economic philosophy advocating for free-market capitalism, deregulation, and a reduction in government spending.