Imagine an Indifference Curve Graph with Units of Clothing on the Y-Axis

question 79

Multiple Choice

Imagine an indifference curve graph with units of clothing on the y-axis and visits to the neighborhood pizza joint for dinner on the x-axis. If the indifference curves for this individual are negatively sloped but close to horizontal, it means:

• A)the marginal utility from another pizza dinner is high relative to the marginal utility of clothing.
• B)the marginal utility from another pizza dinner is low relative to the marginal utility of clothing
• C)this person doesn't like pizza at all.
• D)this person can spend a lot of money on clothes at times.

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Definitions:

Capital Gains

The income gained when the selling price of assets such as stocks, bonds, or real estate surpasses their original buying price.

Economic Growth

An increase in the production of goods and services in an economy over a period of time.

Short-Term Capital Gain

Profit from the sale of an asset held for less than a year, subject to tax at ordinary income tax rates.

Net Working Capital

Represents a measure of a firm's liquidity by calculating the excess of current assets over current liabilities, portraying the company's operational efficiency.