An Increase in Appraisal Costs Will Usually Result in an Increase

question 5

True/False

An increase in appraisal costs will usually result in an increase in internal failure costs.

---

Definitions:

Normal Good

A good for which demand increases as consumer income rises, and decreases as consumer income falls.

Income Elasticity

A rephrased definition: The responsiveness of demand for an item to changes in the income of the people demanding the item.

Inferior Good

A good or service whose consumption declines as income rises, prices held constant.

Positive

Characterized by or denoting an effect, result, or attribute that is beneficial or conducive to growth or well-being.