Use the Following to Answer Questions

question 8

Multiple Choice

Use the following to answer questions:
Figure: Consumer Equilibrium I
The figure shows three of Owen's indifference curves for pizza and soda per week. Owen has $180 per month to spend on the two goods. The price of a pizza is $20, and the price of a soda is $1.50.
-(Figure: Consumer Equilibrium I) Look at the figure Consumer Equilibrium I. What is Owen's marginal rate of substitution of pizza for soda when he is consuming his optimal consumption bundle?

• A) 0.75
• B) 1.5
• C) 13.3
• D) 20

---

Definitions:

Sarbanes-Oxley Act

A U.S. law enacted in 2002 to protect investors by improving the accuracy and reliability of corporate disclosures made pursuant to securities laws.

Proxy Statements

Documents containing the information that companies are required to provide to shareholders to solicit proxy votes, including details on matters to be voted on at shareholder meetings.

SEC Registration Statement

A document filed with the U.S. Securities and Exchange Commission by companies intending to issue new securities to the public, providing essential financial information.

Public Company Accounting Oversight Board

A nonprofit corporation established by Congress to oversee the audits of public companies in order to protect the interests of investors and further the public interest in the preparation of informative, accurate, and independent audit reports.