How does subjective value make gains from by Dr. Robert Murphy @Mises

Question 15 / 96: How does subjective value make "gains from trade" possible?

Answer:

"Gains from trade" mean that both parties are better off after

making a trade. This is possible because the value each person

places on the goods being traded is subjective. For example, Jim

can value Mary's bologna sandwich more than his peanut butter

sandwich, while Mary can have the opposite preference, meaning

that both can walk away from the trade with a good possessing

higher value.

Sample Partial Credit Answer

People will only make a trade if they expect to benefit from it.

Sorry No Instant Evalutaion available for this question

<< First < Previous Flashcard Next > Last >> Test Home Page

https://www.jobilize.com/capitalism-the-market-economy-by-dr-robert-murphy-mises

Capitalism: The Market Economy

Access: Public Peer Review

Dr.Robert MurphyAssociated Scholar

Mises Institute

USA

Attribution: Dr. Robert P. Murphy, Lessons for the Young Economist. (Mises Institute), http://mises.org/document/6215/Lessons-for-the-Young-Economist (Accessed 04 April, 2014). License: Creative Commons BY

Ask

	6 AP 06 Skeletal System Essay By OpenStax Start Flashcards
	14 AP Key Terms 14 Brain Cranial Nerves By OpenStax Start Key Terms
	1 BOD - DERMATOLOGY - By Brooke Delaney Start Exam
	Spanish (Places) By Inderjeet Brar Start Flashcards
	11 Biology 11 Meiosis Sexual Reproduction MCQ By OpenStax Start Quiz
©flickr: iClassical	Music Apperciation By Courntey Hub Start Test
	19 AP 19 Cardiovascular System Heart Essay By OpenStax Start Flashcards
	4 Arts Society: Theater 4 By Jonathan Long Start Quiz
	Introduction to sociology 2e By OpenStax Read Online Course
	1 Psychology Concept Test By John Gabrieli Start Test

Copy and paste the following HTML code into your website or blog.