Suppose You Own a Courier Service and You Use Two

question 27

Multiple Choice

Suppose you own a courier service and you use two types of delivery vehicles - Model A,which costs to purchase,and Model B,which costs $50 000 to purchase.You have a budget of for the purchase of new vehicles.If you were to draw a budget line to illustrate the choice between Model A and Model B vehicles,with A on the vertical axis and B on the horizontal axis,the vertical intercept and the horizontal intercept,respectively,would be

• A)10 and 10.
• B)6 and 6.
• C)0 and 10.
• D)0 and 0.
• E)10 and 6.

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Definitions:

Real Asset

Physical or tangible assets, such as real estate, commodities, or natural resources, which have intrinsic value.

Consumer Durables

Long-term goods purchased by consumers that are expected to last for several years, such as appliances, cars, and furniture.

Real Estate

Property consisting of land and the buildings on it, along with its natural resources such as crops, minerals, or water.

Mutual Fund Shares

Portions of ownership in a mutual fund that an investor can buy, representing a share in the fund's profits, losses, income, and expenses.