Which of the Following Is True with Regard to Value

question 115

Multiple Choice

Which of the following is true with regard to value and exchange?

• A) Exchange generally moves a good from a person who values it more to a person who values it less.
• B) Transaction costs reduce our ability to gain from potentially advantageous trades.
• C) Middlemen increase transaction costs and, thereby, reduce the potential gains derived from trade.
• D) Physical goods have an objective value that is unrelated to time and the person of ownership.

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Definitions:

Research Participants

Individuals who take part in scientific studies, often as subjects undergoing particular treatments or interventions.

Retention

The capability to retain and retrieve knowledge or events over a period.

Critical Thinking

Critical thinking is the intellectually disciplined process of actively and skillfully conceptualizing, applying, analyzing, synthesizing, and evaluating information gathered from observation, experience, reflection, reasoning, or communication.

Cramming

A study strategy involving intensive, short-term study sessions typically used in attempts to memorize large amounts of information quickly before an exam.