Final answer:
The normal force is overcome by gravity when an object is on an incline and the gravitational force along the slope exceeds the normal force and friction.
Step-by-step explanation:
The normal force can be overcome by gravity in specific circumstances. One particular scenario where the normal force loses out against gravity is when an object is on an incline. In this situation, gravity pulls the object down the slope, reducing the normal force as it is only responsible for the component of the object's weight that is perpendicular to the slope. If the incline is frictionless or friction is not sufficient to counteract gravity, the object will slide down. Therefore, the correct answer to when the normal force loses out against gravity is 2) when the object is on a slope and gravity is greater than the normal force and friction.