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:

Population

A community of identical species inhabitants coexisting and mating in a particular region.

Decomposers

Organisms, primarily fungi and bacteria, that break down dead organic material, recycling nutrients back into the ecosystem.

Consumers

Organisms in an ecosystem that obtain energy by feeding on other organisms or organic matter, not capable of producing their own food.

Producers

Organisms, typically plants or algae, that produce organic compounds from simple substances present in their surroundings, usually through the process of photosynthesis.