Exhibit 1-9
-Refer to Exhibit 1-9.The tradeoff that will enable the economy to reach Point A from anywhere along the curve
A)will be either a win-win or lose-lose situation.
B)occurs when everyone can win.
C)cannot occur.
D)occurs when some people win only if others lose.
E)occurs when everyone loses.

Question

Exhibit 1-9 
-Refer to Exhibit 1-9.The tradeoff that will enable the economy to reach Point A from anywhere along the curve
A)will be either a win-win or lose-lose situation. 
B)occurs when everyone can win. 
C)cannot occur. 
D)occurs when some people win only if others lose. 
E)occurs when everyone loses.

Quizplus · Accepted Answer

The tradeoff referred to in the question is the possibility of mutual gains from trade, which allows everyone to benefit from voluntary exchange based on comparative advantage. Therefore, it is not a zero-sum game where some people can only win if others lose (option D) or everyone loses (option E). The concept of tradeoffs implies that some choices or benefits have to be given up in order to attain others, but it does not necessarily lead to a lose-lose situation (option A) or rule out the possibility of win-win outcomes (option B). Therefore, the best choice is B.

Exhibit 1-9 -Refer to Exhibit 1-9.The Tradeoff That Will Enable the Economy