Suppose That 2 Units of X and 8 Units of Y

question 69

Multiple Choice

Suppose that 2 units of X and 8 units of Y give a consumer the same satisfaction as 4 units of X and 2 units of Y. Then

• A) the consumer is willing to give up 3 units of Y to obtain 1 more unit of X.
• B) the consumer is willing to give up 1 unit of Y to obtain 3 more units of X.
• C) the marginal rate of substitution of X for Y is 3.
• D) both a and c
• E) both b and c

---

Definitions:

Adjustments

At the conclusion of an accounting cycle, transactions recorded in financial documents to apportion revenues and costs to the true period of occurrence.

Ledger

The entire group of accounts maintained by a company.

Depreciation Expense Account

Represents the cost allocated for the reduction in the value of a tangible fixed asset over its useful life.

Worksheet

A paper or electronic document used to organize and simplify accounting information before the preparation of financial statements.