Exhibit 6-3 Marginal Utility Data for Goods X and Y

question 47

Multiple Choice

Exhibit 6-3 Marginal utility data for goods X and Y

As shown in Exhibit 6-3, assume that the price of good X is $1 per unit and the price of good Y is $2 per unit and your budget is $13. If you consume 4 units of good X and 2 units of good Y and maximize utility, you should consume:

• A) neither X nor Y.
• B) more of X and less of Y.
• C) more of Y.
• D) more of both X and Y.

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Definitions:

Cash Flow From Operations

The portion of cash flow that results directly from a company's regular business operations, excluding financing or investing activities.

Depreciation

The systematic reduction in the recorded cost of a fixed asset to allocate its cost over its useful life, reflecting wear and tear, decay, or obsolescence.

Net Income

The total profit or loss of a company after all expenses, including taxes and operating costs, have been deducted from revenues.

Indirect Method

The indirect method is a way of reporting cash flows from operating activities by starting with net income and adjusting for non-cash transactions.