Which of the Following Is True of Exchange

question 157

Multiple Choice

Which of the following is true of exchange?

• A) The value of a good is determined by the cost of the resources required to produce the good.
• B) Exchange makes it possible for trading partners to produce more goods through division of labor and adoption of mass production methods.
• C) Nothing new is created by exchange; if one party to an exchange gains, the other must lose an equal amount.
• D) Both a and b are true.

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Definitions:

Legal Immigrants

Individuals who have been granted the right to live permanently and work in a country other than their own, in accordance with that country's immigration laws.

India

A country in South Asia, known for its diverse culture, languages, geography, and as the world's largest democracy.

North Korea

A country in East Asia, officially known as the Democratic People's Republic of Korea, known for its totalitarian government and isolation from much of the international community.

Economic Immigrants

International migrants who have moved from one country to another to obtain economic gains such as better employment opportunities.