7. A common misconception is that trade takes place between two people because: A. they are willing to pay a higher price for a good than it is worth to the current owner. B. they have too much of some goods. C. they have become convinced that it is ethical to do so. D. All the above. E. B and C only.

Select one or more: a. A Pareto efficient outcome is where you cannot make anyone better off without someone else ending up worse off. b. All are happy with their share of income in a Pareto efficient outcome. c. There is only ever one Pareto efficient outcome. d. If two people have £100 to split, any split in which all the money is used up is Pareto-Efficient, even if one person gets none.

QUESTION 1 To ensure that trade benefits all parties involved, a, the trade must involve services as well as goods. b. the trade must be voluntary. c. there must be a difference in comparative advantage. d. specialization through training must occur. O e. money must be exchanged. QUESTION 2 When is marginal analysis needed to make a decision? a, when the choice is between doing more or less of something b. when the choice is between doing something and not doing something c. when the choice is between actions with a quantifiable monetary value d. when the choice is between actions that cannot be assigned a monetary value e. when the choice is between doing something and doing the exact opposite

The price in a competitive market, without any inefficiencies, maximizes the gains from trade, because ____. A. No other single price can provide as much surplus to producers.B. No other single price can provide as much surplus to consumers.C. No other single price can allow as many quantities to be exchanged.D. Only A & B.