Normal vs Inferior Goods Quiz

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

What is the definition of an inferior good?

• A good that is of lower quality than others

• A good for which demand increases as income increases

• A good for which demand decreases as income increases

• A good that is imported from other countries

Which of the following is an example of a normal good?

• Generic brand bread

• Designer clothing

• Used textbooks

• Instant noodles

Which of the following is most likely to be considered an inferior good?

• Organic vegetables

• Public transportation

• Luxury watches

• High-end electronics

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

• Inferior good

• Normal good

• Substitute good

• Complementary good

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

Which of the following is NOT typically considered a normal good?

• Restaurant meals

• Name-brand clothing

• Public bus rides

• New cars

Which of the following is most likely to be an inferior good for most consumers?

• Fast food

• Organic fruit

• Airline tickets

• Private school tuition

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

• Normal good

• Inferior good

• Luxury good

• Complementary good

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

• They are inferior goods

• They are normal goods

• They are public goods

• They are free goods