Whether Exchange Is Between Individuals,firms,or Countries,voluntary Trade Occurs Because

question 46

Multiple Choice

Whether exchange is between individuals,firms,or countries,voluntary trade occurs because:

• A)only one party is made better off.
• B)both parties are made better off.
• C)financial agents devote resources to arranging such trades.
• D)these trades create employment for the economy.
• E)of mandates from the government.

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Definitions:

Discounted Cash Flow

A valuation method used to estimate the value of an investment based on its expected future cash flows, adjusted for the time value of money.

Projected Cash Flows

Estimates of the amount of money expected to move in and out of a business over a specified period in the future.

Capital Rationing

The process of selecting the most profitable projects to invest in when capital is limited.

Sales Volume

The quantity of goods or services sold or delivered in a given period.