Which of the Following Is True of Exchange

question 100

Multiple Choice

Which of the following is true of exchange?

• A) Exchange is a zero sum activity; if one party to an exchange gains, the other must lose an equal amount.
• B) The exchange value of a good is determined by the cost of the resources required to produce the good.
• C) The total output trading partners are able to produce is not influenced by whether the partners trade with each other.
• D) Exchange permits trading partners to expand their total output of goods and services as the result of greater specialization in areas where each has a comparative advantage.

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Definitions:

Legitimate Reasons

Valid, logical, or justifiable grounds for an action, belief, or decision.

Research Results

Research results are the findings obtained from systematic investigation aimed at discovering new knowledge or validating existing knowledge.

External Influences

Factors outside of an individual that impact their behavior and decisions, including social, cultural, and environmental aspects.

Implicit

Refers to something that is suggested or implied but not directly expressed.