A Consumer Is Currently Spending All of Her Available Income

question 285

Multiple Choice

A consumer is currently spending all of her available income on two goods: music CDs and DVDs. At her current consumption bundle, she is spending twice as much on CDs as she is on DVDs. If the consumer has $120 of income and is consuming 10 CDs and 2 DVDs, what is the price of a DVD?

• A)$4
• B)$8
• C)$12
• D)$20

Comprehend how organizations use psychological tests for assessment and development.

Describe succession planning and its stages in developing high-potential employees.

Outline the steps involved in a basic career management system.

Identify career management responsibilities of organizations and employees.

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Definitions:

Common Stock

Common stock represents ownership shares in a corporation, offering voting rights and potential dividends to shareholders.

Noncash Transaction

A transaction that does not involve the direct exchange of cash for goods or services, often involving bartering or trading.

Significant Noncash Activity

Transactions or activities that affect the financial statements of a company but do not involve cash inflow or outflow, such as depreciation or amortization.

Conversion of Bonds

The process where bondholders can exchange their bonds for a predetermined number of shares in the issuing corporation.