Which of the Following Is True with Regard to Value

question 115

Multiple Choice

Which of the following is true with regard to value and exchange?

• A) Exchange generally moves a good from a person who values it more to a person who values it less.
• B) Transaction costs reduce our ability to gain from potentially advantageous trades.
• C) Middlemen increase transaction costs and, thereby, reduce the potential gains derived from trade.
• D) Physical goods have an objective value that is unrelated to time and the person of ownership.

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