Author Question: People (and all resources): a. tend to specialize in those activities in which their opportunity ... (Read 28 times)

biggirl4568 · **on:** Jun 30, 2018

People (and all resources):
a. tend to specialize in those activities in which their opportunity costs are minimized.
b. tend to specialize in those activities in which their opportunity costs are maximized.
c. never consider opportunity costs before specializing in a particular activity.
d. consider only direct costs while choosing to specialize in a particular activity.
e. do not act in their own self-interest but specialize in those activities which benefit others.

Question 2

Which of the following is not true?
a. Voluntary exchange is expected to be advantageous to both parties to the exchange.
b. What one trader gains from a trade, the other must lose.
c. If one party to a potential voluntary trade decides it does not advance his interests, he can veto the potential trade.
d. The expectation of gain motivates people to engage in trade.