-Suppose That You Consume Only Pizza, Which Costs $4 Per

question 59

Multiple Choice

-Suppose that you consume only pizza, which costs $4 per slice, and Diet Pepsi, which costs $2 each. The table above gives your utility from consuming these two goods. If your income is $14, which of the following consumption combinations will you choose?

• A) 3 slices of pizza and 1 Diet Pepsi
• B) 2 slices of pizza and 3 Diet Pepsis
• C) 1 slice of pizza and 5 Diet Pepsis
• D) 0 slices of pizza and 7 Diet Pepsis

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Definitions:

Significant Influence

The power to participate in the financial and operating policy decisions of a business but is not control or joint control of those policies.

Voting Shares

Shares that give the holder the right to vote on company matters, such as electing the board of directors, at shareholder meetings.

Ordinary Shares

Equity securities that entitle their holders to vote at shareholder meetings and to receive dividends, representing ownership in a corporation.

Equity Carrying Amount

A rephrased new definition: The recorded book value of an equity investment in the financial statements, reflecting adjustments for profits, losses, and other relevant transactions.