One parent picks up the child from day care while the other parent goes to the grocery store and begins to make dinner.This is an example of the principle that:
A)markets move toward equilibrium.
B)government policies can change spending.
C)there are gains from trade.
D)markets usually lead to efficiency.

Question

Quizplus · Accepted Answer

This scenario demonstrates gains from trade, as each parent is able to specialize in a task (picking up the child or grocery shopping/cooking) and then exchange their respective "products" (the child or dinner) for mutual benefit. This principle is one of the fundamental concepts in economics, underlying the benefits of trade at both individual and international levels.

One Parent Picks Up the Child from Day Care While