A Consumer Is at an Optimum When the Price of One

question 144

Multiple Choice

A consumer is at an optimum when the price of one good she has been consuming decreases. As a result

• A) the value of the marginal utility of the last unit consumed has increased.
• B) the value of the marginal utility of the last unit consumed has decreased.
• C) the price of the other good must decrease too.
• D) the marginal utility of the last dollar spent on this good is now greater than the marginal utility of the last dollar spent on other goods.

Comprehend the impact of changes in current asset and current liability accounts on cash flows from operating activities.

Understand the classification of different types of cash flows in the statement of cash flows.

Identify the components of cash flows from operating activities using the indirect method.

Understand the treatment of noncash investing and financing activities in the statement of cash flows.

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Definitions:

Pension Trust Fund

A fund established by an employer to facilitate and organize the investment of employees' retirement funds contributed by the employer and employees.

Special Revenue Funds

Funds used by governments to account for revenue from specific sources that are restricted or committed to expenditure for specified purposes other than debt service or capital projects.

Enterprise Funds

Funds used by a government to account for operations financed and operated in a manner similar to private business enterprises, where the intent is that the costs of providing goods or services to the public on a continuing basis be financed or recovered primarily through user charges.

Capital Projects Funds

Governmental accounting funds used to account for financial resources that are allocated for the acquisition or construction of major capital assets by a government, except those financed by proprietary funds.