Which of the Following Most Accurately States the Economic Significance

question 154

Multiple Choice

Which of the following most accurately states the economic significance of exchange?

• A) Physical goods have value because they exist; exchange can neither increase nor decrease their value.
• B) Production of physical goods creates value; exchange merely redistributes this value.
• C) Exchange creates value by moving goods from parties who value them less to parties who value them more.
• D) Exchange reduces value since it consumes resources without adding to the physical supply of goods.