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:

Stars

Employees or units within an organization that perform exceptionally well and are often seen as key contributors to its success.

Stars

In a business context, this term usually relates to products or business units with high market share in fast-growing markets. In astronomy, stars are celestial bodies that emit light and heat from nuclear reactions.

Upside Potential

The potential or likelihood for an investment, asset, or a business to increase in value or performance in the future.

Expanding Markets

The process of entering new geographic or demographic market segments to increase customer base and achieve higher sales.