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When Trade Takes Place and There Are No Externalities or Fraud,then

Question 1

Multiple Choice

When trade takes place and there are no externalities or fraud,then


A) the more powerful party benefits and the other loses.
B) both parties benefit.
C) both parties are worse off as they could have made the goods themselves, assuring themselves of full employment.
D) both parties benefit only if the price is a just price.

Correct Answer:

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