-Refer to Figure 4

question 12

Multiple Choice

-Refer to Figure 4.3,which relates to two consumers shopping for a new car.Which of the following statements is true?

• A) Fuel efficiency is more important to Gina than it is to Greg
• B) Horsepower is just as important to Gina as it is to Greg
• C) Fuel efficiency is more important to Greg than it is to Gina
• D) Indifference curves cannot be used to compare consumers' tastes

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Definitions:

Cash

Liquid funds available for transaction or investment purposes.

Treasury Stock

Shares that were issued and later reacquired by the issuing corporation, which do not confer voting rights or pay dividends.

Purchase Price

The amount of money paid to buy a good, service, or asset. It encompasses all forms of considerations including cash, assets, assumed liabilities, and other financial terms involved in a transaction.

Common Stock

An equity security that represents ownership in a corporation, with rights to vote on corporate matters and receive dividends.