If sean sells tom a tennis racket for 50 we would

37. If Sean sells Tom a tennis racket for $50, we would expect
a. both parties to gain from this transaction.
b. Sean to gain from the transaction, while Tom loses.
c. Tom to gain from the transaction, while Sean loses.
d. the well-being of both parties to be unchanged.
ANS: A PTS: 1 DIF: Moderate NAT: BUSPROG: Analytic
STA: DISC: Gains from trade, specialization and trade TOP: Trade Creates Value
KEY: Bloom's: Comprehension
38. Mateo values his camper at $4,000, and Nicole values it at $9,000. If Nicole buys it from Mateo for
$7,000, which of the following is true?
39. Noah values his car at $10,000, and Emily values it at $14,000. If Emily buys it from Noah for
$11,000, which of the following is true?
40. Which of the following most accurately states the economic significance of exchange?
41. Which of the following about trade is true?
a. Trade does not produce anything new; therefore, it cannot create value.
b. The value of a good is determined by the cost of the material resources required for its
production.
c. The value of a good generally depends on who uses it and circumstances such as when
and where it is used.
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d. All of the above are true.
ANS: C PTS: 1 DIF: Moderate NAT: BUSPROG: Analytic
STA: DISC: Gains from trade, specialization and trade TOP: Trade Creates Value
KEY: Bloom's: Comprehension