If the Utility Number Associated with Consumption Bundle a Is

question 65

Multiple Choice

If the utility number associated with consumption bundle a is exactly half the utility number associated with bundle b, then:

• A)bundle b is twice as desirable as a.
• B)bundle b is preferred to bundle a.
• C)bundle b offers as much utility as two of bundle a.
• D)bundle a is preferred to bundle b.

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Definitions:

Internal Control System

Procedures and methods to control a firm’s assets as well as monitor its operations.

Accounting Department

A division within a company or organization that is responsible for managing financial records, transactions, and reporting.

Periodic System

An inventory system that updates inventory and cost of goods sold at the end of each accounting period.

Vouchers Payable

A liability account in the general ledger that represents the controlling account for the sum of individual vouchers.