Whether exchange is between individuals, firms, or countries, voluntary trade occurs because:
a. only one party is made better off.
b. both parties of the trade are made better off.
c. financial agents devote resources to arrange such trades.
d. these trades create employment opportunity for the economy.
e. of mandates from governments.
b
You might also like to view...
What does it mean to say that a firm has been made liable?
a. The firm is legally responsible to compensate other parties for damage. b. The firm has begun to treat any external costs as private costs. c. The firm has received the property rights to a disputed resource. d. The firm is required to pay a Pigou tax to the government.
When the U.S. economy hits a recession, fiscal policy automatically becomes:
A. expansionary because average tax rates go down and spending on welfare programs goes up. B. discretionary because the government is quick to react to changes in the business cycle. C. contractionary because average tax rates go up and spending on welfare programs goes down. D. contractionary because average tax rates go down and spending on welfare programs goes up.
A downward-sloping portion of a long-run average total cost curve is the result of
a. economies of scale. b. diseconomies of scale. c. diminishing returns. d. the existence of fixed resources.
A value-added tax (VAT) is a less visible form of a sales tax
Indicate whether the statement is true or false