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:

Cognitive Reevaluation

Involves changing the way one thinks about a situation in order to alter its emotional impact.

Perceived Inequity

A feeling of unfairness experienced when individuals perceive that their ratio of efforts to rewards does not align with those of others.

Change Perspective

The act of shifting one's viewpoint or approach to understanding or interpreting information, situations, or concepts in a different way.

Attempt to Change

An effort or endeavor to make something different, typically aimed at improving a situation or solving a problem.