Which of the Following Statements About Trade Is True

question 77

Multiple Choice

Which of the following statements about trade is true?

• A) Trade involves a winner and a loser.
• B) Trade often hurts both parties in the long run.
• C) Trade is a zero-sum proposition.
• D) Trade can benefit both parties.

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Definitions:

Financial Risk

The possibility of losing money on an investment or business venture.

Risk-Averse

A characteristic describing individuals or entities that prefer to avoid risks and favor more certain outcomes.

Marginal Utility

The additional satisfaction or utility that a consumer derives from consuming one more unit of a good or service.

Income

Money that an individual or business receives in exchange for providing a good or service or through investing capital.