mka - into other areas. For example, if goods were not...

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MKA 3702 Summary #5 People gain when they trade voluntarily . People can produce more or less time by concentrating on what they do best. The surplus goods or services they produce can be traded for other valuable goods or services. I believe that this is a theory that is the basis of economy. Money itself does not have value until people put value to it. People gain by “trading” or using money, which is a resource deemed less valuable than the item that you are trading it for. For example, money is used to buy things, it would be utterly useless to collect money and have no use for it in the future, therefore, people work, sell things, trade things to gain something that they may have more of a use for than a “piece of paper.” If people did not have goods or services that they wanted to buy, there would be no point of working and that would also trickle down
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Unformatted text preview: into other areas. For example, if goods were not wanted nor needed, then people would not have to make choices, they would not have to respond to incentives and they would not have any consequences that lie in the future. Also, when trading, both parties have to be giving up something they believe is of value. I do not know too many people that will just give away their hard earned cash or anybody who would throw away the clothes that they sell. It wouldnt make any sense and it wouldnt be economics. People can produce more focusing on what they do best, I agree with this statement. Some people live to work and some people work to live and that is consistent with what they do best....
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This note was uploaded on 06/05/2011 for the course BUS 101 taught by Professor T.mcgee during the Spring '08 term at FSU.

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