If the Utility for Two Goods "X" and "Y" Is

question 89

Multiple Choice

If the utility for two goods "x" and "y" is measured as U = x + y,then it can be concluded that

• A) "x" and "y" are perfect substitutes.
• B) "x" and "y" are perfect complements.
• C) "x" and "y" are both bads.
• D) the indifference curves on the x,y graph will be upward sloping.

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Definitions:

Stockholders' Equity

The equity stake that shareholders have in a company, representing their ownership interest, which is calculated as total assets minus total liabilities.

Common Shares

Common shares represent units of ownership in a company, giving shareholders voting rights and a portion of the profits through dividends, subject to corporate performance.

Accrued Interest Expense

Interest expense that has been incurred but not yet paid during an accounting period.

Installment Note

A debt instrument that requires a series of payments over time until the total debt is paid off.