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:

Dermatitis

A general term for inflammation of the skin, resulting in redness, itching, and sometimes blistering.

Atopic

Related to atopy, a genetic predisposition toward developing allergic hypersensitivity reactions such as eczema, asthma, or hay fever.

Onycholysis

The separation of the nail from the nail bed, a symptom that can be caused by trauma, infection, or systemic disease.

Nail

Keratinous extensions at the end of fingers and toes, serving protection and enhancing tactile function.