Political candidates often hold fundraisers by charging "per plate" for dinner. Wendy purchased four tickets to a $1,000 per plate dinner for a local city council candidate. Does this transaction benefit both parties?
A) No, political candidates should never be allowed to overcharge for a fundraising dinner as that limits the number of people who can afford to attend.
B) Yes, it was a voluntary exchange that benefited both parties.
C) No, Wendy paid too much for four dinners.
D) Yes, but only if the dinners served actually cost $1,000 each.
Answer: B
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A debt instrument represents
A) an ownership claim by the purchaser on the issuer. B) a promise by a borrower to repay principal plus interest to a lender. C) an attempt by a borrower in default to restore his or her credit. D) a nontaxable asset, owned primarily by large corporations.
An example of opportunity cost:
a. is the Chinese food that you gave up when you chose to eat Italian food. b. is the tuition that you pay to attend college. c. for a professor of economics is the pleasure that he or she derives from teaching economics. d. is sweets given up by a person who would never eat them even if he or she could. e. is the amount spent on buying movie tickets.
Use the following table to answer the question below. Units ConsumedTotal UtilityMarginal Utility00-1W20235X3Y10440ZThe value for X is
A. 10. B. 15. C. 5. D. 55.
Describe, in general terms, the strategy of monetary policy, explaining how monetary-policy tools are used to achieve the goals of monetary policy. What intermediate stages are important in going from tools to goals? What are the links between the different stages? How does the Federal Reserve use this strategy today?
What will be an ideal response?