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.

---

Definitions:

Investment

The act of allocating resources, usually money, with the expectation of generating an income or profit.

Clean Energy

Renewable and non-polluting energy sources, such as wind, solar, and hydroelectric power, that minimize environmental impact.

Higher Education

An advanced level of education provided by universities and colleges, typically leading to an undergraduate or postgraduate degree.

Foreign Language

A language that is not the native language of the speaker, but that is used in the area of which the speaker is not a native.