When Trade Takes Place and There Are No Externalities or Fraud,then

question 41

Multiple Choice

When trade takes place and there are no externalities or fraud,then

• A) the more powerful party benefits and the other loses.
• B) both parties benefit.
• C) both parties are worse off as they could have made the goods themselves, assuring themselves of full employment.
• D) both parties benefit only if the price is a just price.

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Definitions:

Deferred Annuity

An insurance product that provides future payments to the holder, usually after retirement, where payments are delayed for a certain period.

Ordinary Annuity

A financial product resulting in a stream of payments to the holder at regular intervals over a specified period of time, typically at the end of each period.

Deferred Annuity

An insurance product that delays income payments until the investor elects to receive them, typically at retirement.

Ordinary Annuity

A sequence of identical payments scheduled at consistent intervals where the interest accumulates after each cycle.