Which of the Following Most Accurately States the Economic Significance

question 146

Multiple Choice

Which of the following most accurately states the economic significance of exchange?

• A) Physical goods have value because they exist; exchange can neither increase nor decrease their value.
• B) Exchange creates value by permitting trading partners to expand total output as the result of specialization in areas where they have a comparative advantage.
• C) Exchange creates value by moving goods from people who value the goods less to people who value the goods more.
• D) Both b and c are true.

---

Definitions:

Epidemiological Study

Research investigating the patterns, causes, and effects of health and disease conditions in defined populations.

Toxic Substance

is any chemical or compound that can cause harm to living organisms through ingestion, inhalation, or skin contact.

Federal Subsidies

Financial aids granted by the government to support businesses, individuals, or other government entities.

Tobacco Farmers

Individuals or organizations involved in cultivating tobacco plants for commercial purposes.