Which of the following statements about exchange (meaning trading) are true? (In
ID: 1161725 • Letter: W
Question
Which of the following statements about exchange (meaning trading) are true? (Indicate all that apply.)
Exchange, as long as it is voluntary, is always an exchange of equally valued things.
Exchange moves resources from people who value them less to people who value them more.
Exchanges can be costly to make happen.
Exchange does not increase wealth since nothing new is created.
Exchange, as long as it is voluntary, is always an exchange of equally valued things.
Exchange moves resources from people who value them less to people who value them more.
Exchanges can be costly to make happen.
Exchange does not increase wealth since nothing new is created.
Explanation / Answer
Ans:
Exchange moves resources from people who value them less to people who value them more.
Exchanges can be costly to make happen.
Exchange occurs between people who believe they will benefit from the trade and this will create value.Hence exchange increases wealth through increase in value.However exchange can be costly.
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