Figure 16.2.2 -To Be Certain That Exchange Between People Is Mutually Beneficial

question 2

Multiple Choice

Figure 16.2.2
-To be certain that exchange between people is mutually beneficial, we generally assume

• A) not all people are free to enter the market at will, but once in they are free to make any offer to trade.
• B) all people have complete information about each other's preferences.
• C) there are no transaction costs.
• D) both B and C
• E) both A and B