Often Trade Will Not Occur Because

question 71

Multiple Choice

Often trade will not occur because

• A)transaction costs are too high
• B)neither party has an opportunity cost
• C)the benefits to one party just equal the losses to the other party
• D)no one expects to gain from the trade
• E)the profits of the firm are excessive

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Definitions:

Entrepreneur

An individual who takes on the risk of starting and managing a business venture to achieve financial returns or other personal objectives.

Production

The process of creating goods or services using inputs like labor, capital, and natural resources.

Production Possibilities Curve

A graphical representation showing the maximum number of goods or services that can be produced using limited resources efficiently.

Normative Statements

Statements that express value judgments or opinions about what ought to be, rather than facts that can be tested or verified.