Author Question: Whether exchange is between individuals, firms, or countries, voluntary trade occurs because: a. ... (Read 23 times)

fox · **on:** Jun 30, 2018

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.

Question 2

The practice of potential buyers offering lower prices for a product of uncertain quality than they would for a product of certain quality is known as:
a. the lemon problem.
b. moral hazard.
c. external costs.
d. None of the above.