Assuming That Good "X" Is Measured on the X-Axis and Good

question 51

Multiple Choice

Assuming that good "x" is measured on the x-axis and good "y" is measured on the y-axis,if the utility for the two goods "x" and "y" can be measured as U = x,then it can be concluded that

• A) "x" and "y" are perfect complements.
• B) "y" is a "bad".
• C) the indifference curves on the x,y graph are upward sloping.
• D) the indifference curves on the x,y graph are vertical.

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Definitions:

Variable Costing

A technique in management accounting that only considers variable production costs as product costs, with fixed costs treated as period costs.

Finished Goods Inventory

The stock of completed products that are ready for sale but have not yet been sold to customers.

Absorption Costing

Absorption costing is an accounting method that includes all direct and indirect manufacturing costs in the cost of a product.

Net Operating Income

A financial metric that calculates a company's income after operating expenses are deducted, but before interest and taxes.