Whenever a buyer and a seller agree to trade
A) the agreement is made based on absolute advantage.
B) they must have identical opportunity costs in producing their respective products.
C) one party will always be worse off.
D) both must believe they will be made better off.
Answer: D
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For cities that provide snow removal, which of the following is a fixed cost?
a. gasoline for snow plows b. wages for snow plow drivers c. purchase of snow removal equipment d. purchase of salt or other substances used to melt snow
It shows the aggregate demand and aggregate supply schedule for a hypothetical economy.
Refer to the table above. If the quantity of real domestic output demanded increased by $1000 at each price level, the new equilibrium price level and quantity of real domestic output would be:
A. 150 and $2500
B. 250 and $2500
C. 200 and $2000
D. 300 and $3000