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) Yes, but only if the dinners served actually cost $1,000 each.
B) Yes, it was a voluntary exchange that benefited both parties.
C) 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.
D) No, Wendy paid too much for four dinners.
B
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In the 15th century, _____ rose to prominence in trade with areas to the east of Europe, while _____ dominated trade with the West
a. Venice; England b. Italy; Denmark c. Portugal; Spain d. France; Holland
Which of the following both shift aggregate demand right?
a. net exports rise for some reason other than a price change and government purchases rise. b. net exports rise for some reason other than a price change and taxes increase. c. net exports fall for some reason other than a price change and government purchases fall. d. net exports fall for some reason other than a price change and taxes fall.
Refer to Table 10-5, which lists the values of Harry Taber's marginal utility and marginal utility per dollar for Italian submarine (sub) sandwiches and tacos. Assume that the price of a sub sandwich is $4 and the price of a taco is $2. When Harry's income is $14, he buys two Italian sub sandwiches and three tacos. The last column lists the values of the marginal utility per dollar for tacos when the price of a taco decreases to $1. Complete this statement: As a result of the change in price
A) Harry's purchasing power has increased. He will reduce his consumption of tacos so he can buy one more sub. This is an example of the substitution effect of a price change.
B) Harry's purchasing power has increased. Harry buys fewer tacos. This is an example of the substitution effect of a price change
C) Harry's purchasing power has increased. If tacos are a normal good for Harry he will buy fewer tacos. This is an example of the income effect of a price change.
D) Harry's purchasing power has increased. If tacos are a normal good for Harry he will buy more tacos. This is an example of the income effect of a price change.
The financial system is made up of the:
A. government's offices that regulate over all transactions conducted between borrowers and savers. B. government and monetary authority. C. government's offices that keep watch over all transactions conducted between savers and lenders. D. institutions that bring together savers, borrowers, investors, and insurers in a set of interconnected markets where people trade financial products.