Asked by Andreas Frånlund on May 20, 2024
Verified
You are sick and tired of your old wardrobe.You decide to donate it to a charity of your choice.Your action
A) Creates wealth by moving the clothes from lower value use to higher value use
B) Destroys wealth since you lose your clothes
C) Creates wealth by making you feel richer
D) All of the above
Old Wardrobe
An old wardrobe typically refers to a collection of clothing that may be outdated or no longer in fashion.
Charity
An organization set up to provide help and raise money for those in need, often operating on a non-profit basis.
Feel Richer
The sensation or perception of having more purchasing power or wealth, regardless of actual financial status.
- Understand the impact of diverse economic actions and policies on the creation or disintegration of wealth.
- Identify the basic principles that control the dispersion of resources, affecting the accumulation or loss of wealth.
Verified Answer
KF
Keitlyn FangonilloMay 23, 2024
Final Answer :
A
Explanation :
Donating your old clothes to a charity creates wealth by moving the clothes from lower value use (sitting unused in your closet) to higher value use (being worn by someone who needs them). This benefits both you and the recipient of the clothes. It may also create wealth in the sense that it can make you feel good about helping others, but this is a secondary benefit.
Learning Objectives
- Understand the impact of diverse economic actions and policies on the creation or disintegration of wealth.
- Identify the basic principles that control the dispersion of resources, affecting the accumulation or loss of wealth.