Goods X and Y

question 3

Multiple Choice

Goods X and Y

For the following questions, assume that good X is on the horizontal axis and good Y is on the vertical axis in the consumer-choice diagram. PX denotes the price of good X, PY is the price of good Y, and I is the consumer's income. Unless otherwise stated, the consumer's preferences are assumed to satisfy the standard assumptions.

-Refer to Goods X and Y.If the indifference curves are horizontal,then we can conclude that

• A) X does not affect the individual's utility.
• B) Y does not affect the individual's utility.
• C) both X and Y affect the individual's utility.
• D) neither good affects the individual's utility.

---

Definitions:

Free Cash Flow

A measure that assesses a company’s ability to fund its capital expenditures and dividends from its net cash provided by operating activities.

Generated Enough Cash

Refers to a situation where a business's operations have produced sufficient cash flow to cover its expenses and investment activities.

Capital Expenditures

Capital utilized by a corporation to purchase, improve, and manage tangible assets including real estate, manufacturing facilities, or machinery.

Operating Activities

Refers to the primary day-to-day activities of a business that are involved in producing and selling its goods and/or services, which generate revenue.