Exhibit 21-3 -Refer to Exhibit 21-3.Assume That the Price of Oranges Increases

question 153

Multiple Choice

Exhibit 21-3

-Refer to Exhibit 21-3.Assume that the price of oranges increases to $2,while the price of apples remains at $1,and Linda allocates $5 of the weekly food budget to purchasing apples and oranges.If Linda wants to maximize her utility,her new consumption bundle will consist of

• A) 1 apple and 2 oranges.
• B) 3 apples and 1 orange.
• C) 5 apples and no oranges.
• D) none of the above

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Definitions:

Securities Purchased

Financial instruments like stocks, bonds, or mutual funds that have been bought and are now owned by the purchaser.

Stock Investments-Run

Stock investments-run refers to the active management or trading of stock investments over a certain period to achieve specific financial goals.

Common Stock

Equity securities representing ownership shares in a corporation, giving holders voting rights and a share in the company’s profits through dividends.

Net Income

The final profit figure for a company after all operational costs and tax obligations are subtracted from income.