If a Consumer Is Indifferent Between 5 Units of a and 8

question 66

Multiple Choice

If a consumer is indifferent between 5 units of A and 8 units of B, then the consumer would:

• A) also be indifferent between 4 units of A and 9 units of B.
• B) also be indifferent between 8 units of A and 5 units of B.
• C) prefer 6 units of A and 8 units of B.
• D) give up 1 unit of A if he/she could acquire 2 units of B.
• E) not trade product A in exchange for any units of product B.

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Definitions:

Debt Ratio

A financial ratio that measures the proportion of a company's total debt to its total assets, indicating the company's leverage.

Liabilities

Financial obligations or debts owed by a business to external parties or individuals, which must be settled over time through the transfer of economic benefits.

Equity

The ownership interest in a company of its shareholders; it represents the amount of assets that would be returned to shareholders if all the company's debts were paid off.

Debt Ratio

A financial ratio that compares the amount of a company’s total debt to its total assets, indicating the leverage level.