MACROECONOMICS-W/MINDTAP
15th Edition
ISBN: 9781305361409
Author: Gwartney
Publisher: CENGAGE L
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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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