Which of the Following Is True

question 2

Multiple Choice

Which of the following is true?

• A)Voluntary trades give both parties more in value than what they give up.
• B)Without the ability to trade, people would not tend to specialize in those areas where they had a comparative advantage.
• C)People can gain by specializing in the production of the good in which they have a comparative advantage.
• D)Voluntary trade directly increases wealth by making both parties better off, and it is the prospect of wealth-increasing exchange that leads to productive specialization.
• E)All of the above are true.

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Definitions:

Overstated Accounts

Financial accounts or records reported with higher values than they actually possess, often leading to a misrepresentation of financial health.

Transactions

Acts of buying, selling, or exchanging goods, services, or financial assets in the course of business.

Assets

are resources with economic value that an individual, corporation, or country owns or controls with the expectation that it will provide future benefit.

Liabilities

Financial obligations or debts that a company or individual owes, which are required to be paid in the future.