When Trade Takes Place and There Are No Externalities or Fraud,then

question 41

Multiple Choice

When trade takes place and there are no externalities or fraud,then

• A) the more powerful party benefits and the other loses.
• B) both parties benefit.
• C) both parties are worse off as they could have made the goods themselves, assuring themselves of full employment.
• D) both parties benefit only if the price is a just price.

---

Definitions:

Cultural Understanding

The awareness and appreciation of the customs, values, and behaviors of different societies or communities.

Tolerance and Diversity

The recognition and acceptance of differences among individuals and cultures, fostering an inclusive and respectful environment.

"I" Statements

A communication technique that emphasizes personal feelings and responsibility by starting sentences with the word "I" instead of attributing actions or thoughts to others.

Defensive Reaction

A response aimed at protecting oneself from criticism, harm, or some perceived threat.