If Japan and the United States engage in trade, and Japan gains as a result of the trade, does that mean the United States has lost in some manner?
If economic agents engage in voluntary trade, then neither party has been made worse off, and at least one of them has been made better off. Voluntary trade, by definition, is not coercive, and an economist would not expect someone to trade in the expectation of becoming worse off. Instead, economists would expect both parties to gain-although the gains may not be equal in size.
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Which of the following statements is true?
A) If the supply of labor exceeds the demand for labor, wage rates tend to rise. B) There is no voluntary unemployment at the equilibrium wage rate. C) If the demand for labor exceeds the supply of labor, wage rates tend to fall. D) Lack of information relating to the job market can lead to unemployment.
Suppose there are 11 buyers and 11 sellers, each willing to buy or sell one unit of a good, with values {$14, $13, $12, $11, $10, $9, $8, $7, $6, $5, $4,}. Assume no transaction costs and a competitive market, what is the equilibrium price in this market?
a. 7 b. 8 c. 9 d. 10
All elasticities are measures of responsiveness
Indicate whether the statement is true or false
An increase in production possibilities is known as
A. Predictable growth. B. Factor expansion. C. Economic growth. D. Upward mobility.