If a Household Increases Its Consumption of a Good by 10

question 178

Multiple Choice

If a household increases its consumption of a good by 10 percent when its income increases by 5 percent,then the good is

• A)an inferior good.
• B)a luxury.
• C)a necessity.
• D)both an inferior good and a necessity.
• E)an unclassified good.

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Definitions:

Cost Accounting Systems

The methods and techniques used to monitor, record, and analyze costs associated with the production of goods and services.

Manufacturing Operations

Processes involved in the production of goods, encompassing all activities from raw material procurement to final product delivery.

Product Cost

The total of all costs associated with making a product, including raw materials, labor, and overhead.

Factory Machinery

Refers to the set of equipment and mechanical devices used in a manufacturing plant to produce goods.