Answer the Question on the Basis of the Following Two

question 104

Multiple Choice

Answer the question on the basis of the following two schedules,which show the amounts of additional satisfaction (marginal utility) that a consumer would get from successive quantities of products J and K. $\begin{array}{c}\begin{array}{ccc}Unit&&\\\text { of } J & & M U_{j} \\\hline1 & & 56 \\2 & & 48 \\3 & & 32 \\4 & & 24 \\5 & & 20 \\6 & & 16 \\7 & & 12\end{array}\begin{array}{ccc}Unit&&\\\text { of } K & & M U_{k} \\\hline1 & & 32 \\2 & & 28\\3 & & 24\\4 & & 20\\5 & & 12\\6 & & 10\\7 & & 8\end{array}\end{array}$ Refer to the data.If the consumer has money income of $52 and the prices of J and K are $8 and $4 respectively,the consumer will maximize her utility by purchasing:

• A) 2 units of J and 7 units of K.
• B) 5 units of J and 5 units of K.
• C) 4 units of J and 5 units of K.
• D) 6 units of J and 3 units of K.

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Definitions:

Note Issuance

Note issuance involves the creation and offering of a promissory note, a financial instrument wherein the issuer promises to pay a specific amount to the holder on demand or at a future date.

Estimable Liability

A financial obligation or debt that can be measured or estimated with a reasonable level of accuracy.

Probable Likelihood

A high chance or probability that an event will occur.

Accrual

A method of accounting that records income and expenses when they are earned or incurred, regardless of when the cash transactions occur.