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:

Impulse Buying

A spontaneous, unplanned decision to buy a product or service, made just before a purchase.

Compulsive Consumption

An uncontrollable drive to purchase goods or services in excess, often leading to personal distress or financial harm.

Illegal Business Practice

Actions undertaken by businesses that are against the law, often to gain unfair competitive advantages.

Unethical

Actions or behavior that are considered wrong or immoral according to societal or professional standards.