Tim Consumes Only Apples and Bananas

question 11

Multiple Choice

Tim consumes only apples and bananas.He prefers more apples to fewer, but he gets tired of bananas.If he consumes fewer than 29 bananas per week, he thinks that 1 banana is a perfect substitute for 1 apple.But you would have to pay him 1 apple for each banana beyond 29 that he consumes.The indifference curve that passes through the consumption bundle with 30 apples and 39 bananas also passes through the bundle with A apples and 21 bananas, where A equals

• A)25.
• B)28.
• C)34.
• D)36.
• E)None of the above.

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Definitions:

Deposit Method

A method of accounting used for transactions where the receipt or payment of money precedes the delivery of goods or services, recognizing the transaction when the delivery occurs.

Revenue Recognition

The guideline in accounting that determines the precise situations where revenue should be recognized or reported.

Future Event

An occurrence or situation that has not yet happened but is anticipated or expected to occur in the course of business or life.

Accounts Receivable

Amounts owed to a business by its customers for goods or services delivered on credit.