If People Are Given One of Two Items of the Same

question 34

Multiple Choice

If people are given one of two items of the same value and are given the choice to exchange it:

• A) about 50 percent will make the change since half prefer the item they have and half prefer the item they do not have.
• B) everyone will keep the first item since it was free.
• C) everyone will trade since people like to trade.
• D) most will keep the original item since people tend to value what they have more than a product that they do not.

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Definitions:

Accounts Receivable

Amounts due to a firm from its clients for goods or services already supplied but not yet paid for.

Dishonored Note

A promissory note that has not been paid by the maker at its maturity date.

Calculating Interest

The process of determining the cost of borrowing money or the gain from lending money, usually expressed as a percentage of the principal amount per period.

Note Receivable

A written promise that one party will pay a specific sum of money to another party at a future date.