Nate and Dylan are brothers.They have to mow the lawn and clean their rooms before they can go to the high school football game.Nate mows the lawn and Dylan cleans up the rooms,and they make it to the football game on time.Which economic concept does this statement BEST represent?
A)"How Much" is a decision at the margin.
B)There are gains from trade.
C)Markets usually lead to efficiency.
D)One person's spending is another person's income.

Question

Quizplus · Accepted Answer

The statement best represents the concept of "There are gains from trade." Nate and Dylan are effectively trading tasks (mowing the lawn and cleaning rooms) to achieve their goal more efficiently than if each had to do both tasks on their own. This division of labor allows them to complete the tasks more efficiently and make it to the game on time, illustrating the gains from trade.

Nate and Dylan Are Brothers