Which of the Following Statements Is Correct

question 261

Multiple Choice

Which of the following statements is correct?

• A) Consumers have the ability to buy everything they desire.
• B) A consumer's budget line shows the limits to what a consumer can buy.
• C) A consumer's budget line shows the goods with the highest marginal utilities.
• D) Rich consumers are unaffected by prices.
• E) A budget line changes only if the person's budget changes.

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Definitions:

Cumulative Voting

A voting system that allows shareholders to concentrate their votes on a single candidate for the board of directors.

Board of Directors

A group of individuals elected by shareholders to oversee the management and make major decisions for a company.

Preferred Stock

A class of ownership in a corporation with a fixed dividend that must be paid out before dividends to common stockholders and which typically does not have voting rights.

Ownership Interest

Refers to the rights and stake a person holds in a particular asset or business, often entailing voting rights and a share in the profits.