The Value of a Good Relates to

question 50

Multiple Choice

The value of a good relates to

• A)total utility,while price relates to consumer surplus.
• B)consumer surplus,while price relates to total utility.
• C)marginal utility,while price relates to consumer surplus.
• D)marginal utility,while price relates to total utility.
• E)total utility,while price relates to marginal utility.

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Definitions:

Fair Value

The sum to be gained from an asset liquidation or the amount to settle a liability in a conscientious market exchange on the designated day for appraisal.

Fully Amortized

A term that describes a loan or mortgage for which all the principal and interest payments have been completed over the term, leaving no balance.

Book Values

The value of an asset as recorded on a company's balance sheet, calculated as cost minus accumulated depreciation.

Consolidated Cash

The total cash amount reported on the consolidated financial statements, combining the cash holdings of a parent company and its subsidiaries.