A Consumer Allocates Income Between Clams and Mussels

question 100

Multiple Choice

A consumer allocates income between clams and mussels.If clams are a normal good, then when the price of clams rises, the consumer will definitely buy

• A)more clams and more mussels
• B)fewer clams and fewer mussels
• C)more clams and fewer mussels
• D)fewer clams and more mussels
• E)fewer clams, but the effect of the price change on purchases of mussels cannot be predicted

Comprehend the unique attributes of various forms of business entities.

Understand the financial transaction impacts on the accounting equation.

Identify the types of financial statements and their characteristics.

Analyze transactions and their effects on business finances.

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Definitions:

Defined-benefit Plan

A type of pension plan in which an employer promises a specified pension payment upon retirement, based on an employee's earnings history, tenure of service, and age.

Defined-contribution Plan

A retirement plan where employees, employers, or both make contributions on a regular basis, with future benefits dependent on investment performance.

Contributory Plan

A pension plan in which employees contribute a portion of their earnings to fund retirement benefits.

Non-contributory Plan

An employer-sponsored plan where the employer fully funds the benefits without employee contributions.