Noah Values His Car at $10,000, and Emily Values It

question 40

Multiple Choice

Noah values his car at $10,000, and Emily values it at $14,000. If Emily buys it from Noah for $11,000, which of the following is true?

• A) Noah gains $1,000 of value, and Emily gains $3,000 of value.
• B) Noah gains $11,000 of value, and Emily loses $11,000 of value.
• C) Noah gains $10,000 of value, and Emily loses $14,000 of value.
• D) Noah and Emily both gain $11,000 of value.

---

Definitions:

Recession

A significant decline in economic activity spread across the economy, lasting more than a few months, typically visible in GDP, real income, employment, industrial production, and wholesale-retail sales.

Consumer Ethnocentrism

The belief held by customers that purchasing domestic goods is morally right and superior to buying foreign products.

Hindu Goddess

A female deity in Hinduism, representing various aspects of life, nature, and the cosmos, such as prosperity, knowledge, and power.

WTO

The World Trade Organization, an international body that deals with the rules of trade between nations, aiming to ensure smooth, predictable, and free trade.