Assume That an Individual Consumes Two Goods,X and Y

question 39

Multiple Choice

Assume that an individual consumes two goods,X and Y.The total utility assumed measurable) of each good is independent of the rate of consumption of other goods.The prices of X and Y are,respectively,$5 and $10. Given the above,if the consumer has $110 to spend on X and Y,which combination will the consumer choose?

• A)5X and 4Y
• B)6X and 8Y
• C)7X and 6Y
• D)8X and 7Y
• E)7X and 7Y

Understand the accounting for and effects of restrictions/appropriations of retained earnings.

Distinguish between public and private corporations based on stock characteristics.

Grasp the effects of correcting errors on retained earnings and how to calculate year-end balances.

Know the main sources of stockholders' equity and the primary purpose of stock splits.

---

Definitions:

Franchises

A type of license that grants a franchisee access to a franchisor’s proprietary business knowledge, processes, and trademarks, thus allowing the franchisee to sell a product or service under the franchisor's business model.

Plant Assets

Long-term tangible assets that are used in the production or supply of goods and services, such as machinery, buildings, and vehicles.

Natural Resources

Assets that occur in nature, like minerals, timber, and oil, which can be used for economic benefit.

Intangible Assets

Non-physical assets owned by a business that have value, such as patents, trademarks, goodwill, and copyrights.