Question

Which is the most accurate statement about trade? a. Trade can make every person better off. b. Trade helps rich people and hurts poor people. c. Trading for a good can make a person better off only if the person cannot produce that good itself. d. Trade makes some people better off and others worse off.

Answer 1

Answer:

a. Trade can make every person better off.

Explanation:

Trade generates a benefit for all parties trading. If a party do not fell like winning with trade, it will stop trading and the trade will not occur. It is important for each party to make sure the other wants to keep trading, so quantity and price will be based upon both parties agreement.

A person can trade for product she produces, for example a person who produce a certain fruit can buy the same fruit when is off-station in their side of the world with another producer.

It could also trade becasue is the raw material of a finished product and it need more input for his facilities.

If a person or a party who is trading thinks is worse than before the trade, then it will stop trading so, as long as there is trade, both parties are better off after the trade.