Which of the following is true with regard to value and exchange?
A) Exchange generally moves a good from a person who values it more to a person who values it less.
B) Transaction costs reduce our ability to gain from potentially advantageous trades.
C) Middlemen increase transaction costs and, thereby, reduce the potential gains derived from trade.
D) Physical goods have an objective value that is unrelated to time and the person of ownership.

Question

Quizplus · Accepted Answer

Transaction costs, such as time and effort spent on finding trading partners or negotiating deals, can hinder the ability to make beneficial trades.

Which of the Following Is True with Regard to Value