When Prices Are ($2, $10), Emil Chooses the Bundle (1

question 20

Multiple Choice

When prices are ($2, $10) , Emil chooses the bundle (1, 6) , and when prices are ($12, $4) , he chooses the bundle (7, 2) .

• A)Emil violates WARP.
• B)Emil has kinked indifference curves.
• C)The bundle (1, 6)is revealed preferred to (7, 2), but (7, 2)is not revealed preferred to (1, 6).
• D)The bundle (7, 2)is revealed preferred to (1, 6), but (1, 6)is not revealed preferred to (7, 2).
• E)None of the above.

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Definitions:

Master Budget

The master budget is a comprehensive financial planning document incorporating all other budgets, which outlines an organization's financial and operational goals.

Responsibility Accounting

A part of management accounting that involves accumulating and reporting revenues and costs on the basis of the manager who has the authority to make the day-to-day decisions about the items.

Noncontrollable Costs

Costs incurred indirectly and allocated to a responsibility center that are not controllable at that level.

ROI

Return on Investment; a performance measure used to evaluate the efficiency or profitability of an investment relative to its cost.