Higher Indifference Curves Are Preferred to Lower Ones as Long

question 93

Multiple Choice

Higher indifference curves are preferred to lower ones as long as the

• A) marginal rate of substitution is diminishing.
• B) products in the bundle are "bads" not "goods."
• C) products in the bundle are "goods" not "bads."
• D) budget constraint does not shift.

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Definitions:

Indirect Method

A method of reporting cash flows from operating activities by adjusting net income for changes in non-cash accounts.

Direct Method

A way of preparing the cash flow statement where actual cash flow information from the company's operations is used.

Operating Activities

Transactions and events that affect net income, primarily related to the core operations of a business.

Direct Method

An approach to cash flow statement preparation that lists major classes of gross cash receipts and payments.