Normal vs Inferior Goods Flashcard

Front

Which of the following best defines a normal good in economics?
A good for which demand decreases as income increases,
A good for which demand increases as income increases,
A good that is always expensive,
A good that is produced in large quantities

Back

A good for which demand increases as income increases

Front

What is the definition of an inferior good?

Back

A good for which demand decreases as income increases.

Front

Which of the following is an example of a normal good? Generic brand bread, Designer clothing, Used textbooks, Instant noodles

Back

Designer clothing

Front

Which of the following is most likely to be considered an inferior good? Organic vegetables, Public transportation, Luxury watches, High-end electronics

Back

Public transportation

Front

If a consumer’s income increases and they buy more steak instead of ground beef, what type of good is steak?

Back

Normal good

Front

Which of the following statements is true about inferior goods?
- Their demand rises as consumer income rises
- Their demand falls as consumer income rises
- Their demand is unaffected by changes in income
- They are always unhealthy

Back

Their demand falls as consumer income rises

Front

Which of the following is NOT typically considered a normal good?
Restaurant meals, Name-brand clothing, Public bus rides, New cars

Back

Public bus rides

Front

Which of the following is most likely to be an inferior good for most consumers?
Fast food, Organic fruit, Airline tickets, Private school tuition

Back

Fast food

Front

If a person’s income decreases and they start buying more instant noodles, what type of good are instant noodles for this person?

Back

Inferior good

Front

A student receives a higher allowance and decides to buy more branded sneakers. What does this behavior indicate about branded sneakers?

Back

They are normal goods