Alvin's Preferences for Good X and Good Y Are Shown

question 101

Multiple Choice

Alvin's preferences for good X and good Y are shown in the diagram below. Figure 3.2
-Based on Figure 3.2, it can be inferred that:

• A) Alvin does not consider good X as "good."
• B) Alvin will never purchase any of good Y.
• C) Alvin regards good X and good Y as perfect substitutes.
• D) Alvin regards good X and good Y as perfect complements.
• E) none of the above

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Definitions:

Personal Assets

Items of value owned by an individual, including but not limited to cash, real estate, and personal belongings.

Current Balances

The total amount present in an account at any given point in time, reflecting all transactions up to that moment.

Capital Account Deficit

A situation where a country's outflow of capital exceeds the inflow, indicating negative net foreign investment.

Income-Sharing Plan

A compensation scheme where employees receive a share of the profits of the company in addition to their regular salary.