Jim Has an Old (Working) Television That He Would Like

question 59

Multiple Choice

Jim has an old (working) television that he would like to get rid of now that he has purchased a new high-definition, flat-screen television. The old television is no longer worth anything to him now that he has his new flat-screen TV. Veronica on the other hand has an even older television that has just broken down. She would pay up to $50 for any working TV. Which of the following statements is NOT true?

• A) If Jim trades Veronica his old television for $50, total value in society increases by $50.
• B) If Jim trades Veronica his old television for $50, both are better off but total value in society does not increase.
• C) If a middleman facilitates the $50 trade between Jim and Veronica, but takes a $10 finders' fee, Jim and Veronica will still both be better off.
• D) If Jim and Veronica do not trade, both are worse off than if they did trade.

---

Definitions:

Activity-Based Costing

A method of cost accounting that assigns costs to products or services based on the resources they consume.

Manufacturing Overhead

The indirect costs associated with manufacturing, such as utilities, maintenance, and salaries not directly involved in production.

Time-Driven

Refers to activities or processes whose scheduling or execution is strictly influenced by the passage of time.

Total Minutes

The complete count of minutes accumulated across a specified timeframe, often used in time tracking or productivity analysis.