$\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\text { Toffee (bars) }$ $\quad\quad\quad\quad\quad\text { Cashews (bags) }$

question 4

Multiple Choice

$\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\text { Toffee (bars) }$$\quad\quad\quad\quad\quad\text { Cashews (bags) }$
$\begin{array}{|l|l|l|l|l|}\hline \text { units}&\text {marginal utility }&\text {total utility }&\text {marginal utility }&\text {total utility }\\\hline 1 & 10 & 10 & 12 & 12 \\\hline 2 & 8 & 18 & 10 & 22 \\\hline 3 & 5 & 23 & 7 & 29 \\\hline 4 & 3 & 26 & 5 & 34 \\\hline 5 & 1 & 27 & 2 & 36 \\\hline 6 & 0 & 27 & 1 & 37 \\\hline 7 & 0 & 27 & 0 & 27 \\\hline \end{array}$
$\text { TABLE 6-1 }$ FIGURE 6- 8
-Refer to Figure 6- 8. In part (ii) , the line joining points X, Y, and Z is known as , which shows how .

• A) an indifference map; the value of various combinations of two goods changes.
• B) an income- consumption line; consumption changes with changing relative prices and constant income
• C) a price- consumption line; consumption changes as relative prices change, with money income constant
• D) an income- consumption line; consumption changes as income changes, with relative prices held constant
• E) a price- consumption line; consumption changes as money income and relative prices change

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Definitions:

Salvage Value

The anticipated remaining worth of an asset when it reaches the end of its operational lifespan.

Net Present Value

The difference between the present value of cash inflows and the present value of cash outflows over a period of time.

Discount Rate

The interest rate used in discounted cash flow analysis to determine the present value of future cash flows.

Working Capital

The difference between a company’s current assets and current liabilities, indicating the short-term financial health and operational efficiency.