Which Is NOT a Benefit of Trade

question 37

Multiple Choice

Which is NOT a benefit of trade?

• A) reaping the rewards of specialization
• B) creation of value for all parties involved
• C) equivalent gains for all parties involved
• D) improved allocation of resources
• E) More wants are satisfied.

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Definitions:

Exchange

The act of giving one thing and receiving another, especially of the same type or value, commonly used in the context of goods, services, or financial instruments.

Individuals

Refers to single human beings, distinct from a group, class, or family.

Comparative Advantage

The ability of an individual or group to carry out a particular economic activity more efficiently than another activity.

Opportunity Cost

The value of the next best alternative foregone as a result of making a decision.