A Mother Bought What She Thought Was a Large Box

question 116

Multiple Choice

A mother bought what she thought was a large box of un-sweetened cereal; it was the same size as other brands whose boxes clearly marked they were 22 oz.However, when she opened the box it was barely 3/4ths full.The Fair Packaging and Labeling Act would not protect her unless

• A)the package printed the disclaimer that the product might settle during shipping.
• B)the package states that the contents should be purchased by weight rather than bulk.
• C)the package clearly states 22 oz.on the front but the actual weight is only 16 oz.
• D)the package lists all the ingredients including the total amount of sugar.
• E)an identical package by the same manufacturer had the exact same amount inside.

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Definitions:

Cash Outlay

The actual amount of money spent or invested in a specific period or for a specific purpose.

Cash Savings

Funds that are kept on hand or in a savings account for future needs, emergencies, or investment opportunities.

Investment Opportunities

Potential placements of capital in projects or assets that are expected to yield returns or financial growth over time.

Discount Rate

The interest rate used in discounted cash flow (DCF) analysis to present value future cash flows, or in other cases, the central bank's interest rate for banks.