Which of the Following Statements Is NOT True About Exchanges

question 114

Multiple Choice

Which of the following statements is NOT true about exchanges in the market system?

• A) In voluntary exchange both parties are better off because of the exchange.
• B) Exchanges occur only in situations of barter where the market price is irrelevant.
• C) Prices indicate what is relatively abundant and what is relatively scarce.
• D) Transaction costs in exchanges include the cost of enforcing a contract as well as the costs of information.

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Definitions:

Hertz

The unit of frequency in the International System of Units (SI), representing one cycle per second, used to measure wave frequencies such as sound waves or brainwaves.

Monocular Cue

Visual information that provides depth perception from a single eye by using cues of linear perspective, texture gradient, and motion parallax.

Perspective

A monocular cue for depth based on the convergence (coming together) of parallel lines as they recede into the distance.

Weber's Constant

A principle in psychophysics that quantifies the smallest change in a stimulus that can be detected, stating that this change is a constant proportion of the original stimulus intensity.