Economics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN: 9781305506725
Author: James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher: Cengage Learning
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Question
Chapter 2, Problem 1CQ
To determine
Explain if the transaction can improve the welfare of people.
Expert Solution & Answer
Explanation of Solution
In an economy, ‘J’ will get $5,000 by trading used car to ‘S’. In this case, by getting $5,000, ‘J’ can spend their entire $5,000 in the market and this leads to improve the welfare of more people in an economy.
Thus, the given statement is ‘False’.
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Chapter 2 Solutions
Economics: Private and Public Choice (MindTap Course List)
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