Which of the Following Best Characterizes the Relationship Between the Parties

question 141

Multiple Choice

Which of the following best characterizes the relationship between the parties to a trade and the gains from trade?

• A) Gains from trade are fueled by differences in preferences and differences in opportunity costs of production.
• B) Gains from trade are fueled by differences in preferences only.
• C) Gains from trade are fueled by differences in opportunity costs of production only.
• D) Gains from trade are greatest when there are no differences between the two parties to trade.

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Definitions:

Validity

An index of the extent to which a measure truly reflects what it is supposed to measure.

Employment Interview

A formal conversation between a job applicant and a representative of an employer which is conducted to assess whether the applicant should be hired.

Selection

The process of choosing from among alternatives based on certain criteria, often used in contexts like recruitment or information processing.

Similar-To-Me Effect

The tendency of individuals to favor or rate more positively those who are perceived to be similar to themselves in some manner.