Question

Economists use the phrase________ to refer to the positive gains enjoyed by both buyers and sellers when they trade

A) "trade creates wealth"
B) "there is no free lunch"
C) "wealth creates trade"
D) "every man for himself"

Answer 1

The correct answer is A: Trade creates wealth

Step-by-step explanation:

Trading is simply an exchange of good and services. Economist use the phrase "trade creates wealth" to refer to the mutual gains enjoyed when a trade is complete. According to Economists, as long as people hope that their situation would change for good after a trade, rather than no trade at all, trading will continue.