Exhibit 6-5 Marginal Utility Data for Desserts

question 49

Multiple Choice

Exhibit 6-5 Marginal utility data for desserts

Refer to Exhibit 6-5. Each dessert is priced at $1. If you had $10 to spend on desserts, which of the following combinations of goods would you buy?

• A) 5 units of brownies, 4 units of ice cream, and 1 unit of pie.
• B) 4 units of brownies, 5 units of ice cream, and 1 unit of pie.
• C) 4 units of brownies, 4 units of ice cream, and 2 units of pie.
• D) 4 units of brownies, 3 units of ice cream, and 3 units of pie.

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Definitions:

Par Value

The face value of a bond or stock as stated by the issuing company, which does not necessarily match its market value.

Stated Value

An arbitrary value assigned to no-par value stock by the board of directors of a company, used for accounting purposes.

Date Of Record

The date of record is the specific date set by a company on which the shareholders must be on the company's books in order to receive a declared dividend.

Cash Dividend

The allocation of earnings in cash form by a company to its stockholders.