Which of the following is true of exchange?
A) Exchange permits trading partners to expand their total output of goods and services as the result of greater specialization in areas where each has a comparative advantage.
B) The total output that trading partners are able to produce is not influenced by whether they trade with each other.
C) Exchange is a zero sum activity; if one party gains, the other must lose an equal amount.
D) The exchange value of a good is determined by the cost of the resources required to pr
A) Exchange permits trading partners to expand their total output of goods and services as the result of greater specialization in areas where each has a comparative advantage.
You might also like to view...
Identify and briefly explain two economic incentives that would encourage firms to research and implement “design for recycling” programs.
What will be an ideal response?
The efficient level of college enrollment in Inland is
A) 0.6 million students per year. B) 0.7 million students per year. C) 0.8 million students per year. D) 0.5 million students per year.
When factor markets are competitive, it always pays a profit-maximizing firm to
a. use more of the factor. b. bid very low prices for inputs. c. reduce the use of all inputs. d. use that quantity of input that makes MRP equal to the price of the input.
Controlling market behavior that might prevent competition among all firms in the market
a. social regulation b. economic regulation c. antitrust policy d. none of the above