Bob Goes Out to Dinner Three Times Per Week, Usually

question 163

Multiple Choice

Bob goes out to dinner three times per week, usually either to the local steak house or a Chinese restaurant in town. If the steak house were to raise its prices, Bob would probably (1) be less inclined to eat at the steak house and more inclined to eat at the Chinese restaurant when he did go out and (2) eat out fewer times per week because at the higher prices he cannot afford to eat out as much.

• A) Part 1 is an example of the substitution effect, part 2 of the income effect.
• B) Part 1 is an example of the income effect, part 2 of the substitution effect.
• C) Part 1 is an example of the law of diminishing marginal utility, part 2 of the substitution effect.
• D) Part 1 is an example of the proportions hypothesis, part 2 of the income effect.

Grasp the functionality of calendar views (Day, Week, Work Week, Month) and printing options.

Learn how to schedule, modify, and cancel meetings including participant management.

Understand the importance of using natural language for date entries and the role of proper capitalization.

Identify the use and purpose of the appointment area, including the creation of appointments and meetings.

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Definitions:

Capital Accounts

Ledger accounts that show the investment amounts of owners or shareholders in a company.

Loss On Realization

occurs when the proceeds from selling an asset or settling a liability are less than the carrying amount on the books.

Noncash Assets

Assets that cannot be easily converted into cash, such as real estate, equipment, and investments.

Capital Balances

The amount of money each partner has invested in a partnership or the equity value in partnerships' accounts.