If a Motorist Is Stranded in Front of a Pay

question 234

Multiple Choice

If a motorist is stranded in front of a pay phone and has only dollar bills, and he ends up buying a quarter from a passerby for $1,

• A) the stranded motorist must not understand that four quarters are worth $1.
• B) economic theory is unable to explain this transaction.
• C) both parties have gained from this exchange.
• D) the passerby was made better off and the motorist worse off.

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