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Ralph Purchases a Car from a Minor and Subsequently Sells

question 71

Multiple Choice

Ralph purchases a car from a minor and subsequently sells it to Jack,another adult who had no reason to know of the previous transaction and who paid full value for the car.Which of the following best describes this situation?


Definitions:

Capital

Economic resource that is used in the production of goods and services. It includes tools, buildings, machinery, and equipment.

Either-Or Decision

A decision-making process that involves choosing between two mutually exclusive options or paths.

Implicit Cost

The opportunity cost equal to what a firm must give up in order to use resources it already owns, not directly involving monetary payment.

Marginal Analysis

The study of marginal decisions.

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