When Individuals Are Considering Whether to Make a Donation to a Not-For-Profit

question 11

Multiple Choice

When individuals are considering whether to make a donation to a not-for-profit entity, the answer to which of the following questions is not typically sought?

• A) Will donated funds be used effectively by the entity to accomplish its purpose?
• B) Will the donated funds be wasted?
• C) How much should this entity receive?
• D) Is this entity profitable?
• E) Is contributing to this charity a wise allocation of resources?

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Definitions:

Marginal Utility

The additional satisfaction or benefit received by consuming one more unit of a good or service.

Budget Line

A representation of all possible combinations of two goods that an individual can afford given their income and the prices of the goods.

Income-Consumption Curve

A graphical representation showing how a consumer's optimal bundle of goods varies with changes in income.

Price Elasticity

A measure reflecting the impact of price variations on the demand for a particular product.