Ken Values His Boat at $5,000, and Monica Values It

question 20

Multiple Choice

Ken values his boat at $5,000, and Monica values it at $8,000. If Monica buys it from Ken for $7,000, which of the following is true?

• A) Ken gains $2,000 of value, and Monica gains $1,000 of value.
• B) Ken gains $7,000 of value, and Monica loses $7,000 of value.
• C) Ken gains $7,000 of value, and Monica gains $3,000 of value.
• D) Ken and Monica both gain $7,000 of value.

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Definitions:

Covenant Deeds

Legal agreements used in property deeds to restrict sale to, occupation by, or use by people of a particular race or religion, historically contributing to racial segregation and discrimination in housing.

Massey's Spatial Assimilation Thesis

A theory proposed by sociologist Douglas S. Massey, which suggests that the spatial assimilation of immigrants into a host society occurs as they acquire socioeconomic status and adopt behaviors of the native population.

Ethnic Enclaves

Geographical areas with high concentrations of individuals from the same ethnicity, fostering a sense of community and cultural preservation.

Economically Established

Refers to individuals or entities that are financially stable and have a solid economic foundation.