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:

Patronage Model

A funding approach where supporters or patrons financially back an individual, organization, or project, often in the arts or creative fields, without expecting a financial return.

Crowdfunding

A fundraising strategy where a project or business is supported by collecting small contributions from many individuals, often through an online platform.

Crowdfunding Campaign

A fundraising initiative where individuals or organizations raise money for projects, causes, or businesses from a large number of people, typically via the internet.

Manufacturing

The process of producing goods using labor, machinery, tools, and chemical or biological processing or formulation.