If Bert's Budget Constraint Is Represented in the Graph Shown

question 34

Multiple Choice

If Bert's budget constraint is represented in the graph shown, his opportunity cost of three bags of chips is:

• A)twelve pints of ice cream.
• B)eight pints of ice cream.
• C)four pints of ice cream.
• D)Cannot answer without knowing Bert's income.

---

Definitions:

Accounts Receivable

Funds that customers owe to a company for products or services that have already been provided but not yet compensated for.

Fees Earned

Revenue recognized by a company or individual in exchange for services rendered.

Adjusted Trial Balance

A financial statement listing all the accounts and their final balances after all adjustments have been made.

Closing Entries

At the end of an accounting cycle, transactions are recorded to shift balances from provisional accounts to lasting accounts.