Which of the Following Statements About Exchange Is True

question 195

Multiple Choice

Which of the following statements about exchange is true?

• A) If everyone starts off with the same quantities of each good, it would be impossible to realize gains from trade.
• B) Exchange tends to move each good toward those individuals who value the good more highly.
• C) Exchange always results in one party being made better off and the other being made worse off.
• D) For trade to occur, everyone must start off with the same value of the good that is traded.

---

Definitions:

Expert Power

Expert power is the influence one possesses due to their high level of skills, knowledge, or expertise in a particular area, which can impact others' behavior or decisions.

Trustworthy

describes the quality of being reliable, honest, and able to be trusted.

Technical Skills

Specific abilities and knowledge related to particular areas of expertise or technology necessary for proficient performance in a job or task.

Factual Knowledge

Pertains to information that is based on actual facts or reality, often verified through empirical evidence.