The Benefits of Trade Include: I

question 122

Multiple Choice

The benefits of trade include: I. higher output due to specialization. II. higher output due to comparative advantage. III. increased welfare when preferences differ.

• A) I and II only
• B) II and III only
• C) I and III only
• D) I, II, and III

---

Definitions:

Consensus

An element of a valid contract; both parties must objectively know and agree to its terms through an offer and an acceptance.

Rectification

The legal process of correcting a mistake in a document to reflect the true intentions of the parties involved.

Breach of Contract

The violation of a contractual obligation by failing to perform one's own promise, by impeding another party's performance, or by otherwise making performance impossible.

Adhesive

Pertains to contracts or clauses that are one-sided or unfairly advantageous to one party, typically presented on a "take it or leave it" basis.