Which of the Following Is Not an Example of the Principle

question 1

Multiple Choice

Which of the following is not an example of the principle that trade can make everyone better off?

• A)Americans buy tube socks from China.
• B)Residents of Maine drink orange juice from Florida.
• C)A homeowner hires the kid next door to mow the lawn.
• D)All of the above are examples of the principle that trade can make everyone better off.

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Definitions:

Misallocation

An inefficient distribution of resources in an economy, leading to outcomes where resources are not used in the best possible ways according to the needs and wants of society.

Queuing System

A queuing system is a model used to analyze and manage the process by which customers wait for service or goods, focusing on efficiency and fairness.

Opportunity Cost

The value of the next best alternative forgone as the result of making a decision.

True Cost

The comprehensive cost of a good or service, including all direct and indirect expenditures as well as environmental and social impacts.