Question

Which of the following principles underlies the interaction of individual choices? a Marginal analysis is used for "how much" decisions. b People usually exploit opportunities to make themselves better off. c Resources are scarce. d There are gains from trade.

Answer 1

Answer:

d There are gains from trade.

Explanation:

A trade can be defined as the process that typically involves the buying and selling of goods and services between a buyer (consumer) and a seller (producer).

Thus, trade creates an enabling environment that suits a specific service provider or producer of a particular product.

Basically, the interaction of individual choices underlies the fact that there are gains from trade.

This ultimately implies that, as a result of the difference between human needs and wants, there is always an opportunity for various producers to manufacture goods and services to meet the needs or requirements of these customers.