Which of the Following Most Accurately States the Economic Significance

question 146

Multiple Choice

Which of the following most accurately states the economic significance of exchange?

• A) Physical goods have value because they exist; exchange can neither increase nor decrease their value.
• B) Exchange creates value by permitting trading partners to expand total output as the result of specialization in areas where they have a comparative advantage.
• C) Exchange creates value by moving goods from people who value the goods less to people who value the goods more.
• D) Both b and c are true.

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Definitions:

Legislatures

Elected bodies of government responsible for making and changing laws within a country or state.

Apologies

Apologies are expressions of regret or sorrow for actions or statements that have potentially caused harm or offense to others.

Slavery

A system where people are owned by others, deprived of personal freedom, and forced to perform labor or services without the right to refuse.

Alabama

A state located in the southeastern region of the United States, known for its significant historical events, especially those related to the Civil Rights Movement.