Use the Following Statements to Answer This Question

question 54

Multiple Choice

Use the following statements to answer this question:
I. The income-consumption curve for perfect complements is a straight line.
II. The price-consumption curve for perfect complements is a straight line.

• A) I and II are true.
• B) I is true and II is false.
• C) II is true and I is false.
• D) I and II are false.

Evaluate the effectiveness of recommendation statements.

Analyze the information needed to support decision-making in recommendation reports.

Understand the structure and content requirements for the results section of a recommendation report.

Identify the appropriate type of report based on the information needs and context.

---

Definitions:

Value-Weighted Index

An stock index in which each component is weighted according to its market value.

Price-Weighted Index

A stock market index in which each company's stock is included in proportion to its share price, meaning higher-priced stocks have more influence on the index's performance.

Stocks

Financial instruments that represent an ownership share in a corporation, entitling the holder to a proportion of the company's assets and profits, usually traded on stock exchanges.

Outstanding

Outstanding, particularly in context to shares, refers to the total number of shares of a corporation that have been issued and are held by investors, including restricted shares.