Selling tickets to graduation ceremonies has long been a tradition among students at institutions that limit the number of guests. Suppose your classmate, Heidi, purchased two tickets for $40 each. Is this transaction economically efficient?
A) Yes, it is efficient only from the perspective of the seller and not from the perspective of the buyer.
B) Yes, it was a voluntary exchange that benefited both parties.
C) No, people should never be allowed to sell items they received for free.
D) No, Heidi paid too much for the tickets.
B
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Cambridge Corporation sold buildings and a machine for cash. Indicate which section, if any, this transaction would appear in, or relate to, on a statement of cash flows.
A. Operating activities section B. Investing activities section C. Financing activities section D. Does not appear on cash flow statement
Bart operates a lemonade stand in front of his house. His father works at the Springfield Nuclear Power Plant. Which of the following is most likely to be true?
a. The long run is the same for the power plant as it is for the lemonade stand. b. The long run is longer for the power plant than it is for the lemonade stand. c. The long run is shorter for the power plant than it is for the lemonade stand. d. We cannot compare the long runs because these are different businesses. e. It's impossible for the power plant short run to be shorter than the lemonade stand's long run.