Question

Dee is an accomplished actress and a homeowner who pays a landscaper to maintain her lawn rather than do it herself. Dee has determined that she can earn more in the hour it would take her to work on her lawn than she must pay her landscaper. This scenario is an example of which principle of economics?

A. Trade can make everyone better off.
B. Markets are usually a good way to organize economic activity.
C. Governments can sometimes improve market outcomes.
D. Prices rise when the government prints too much money.

Answer 1

This scenario is an example of the principle of economics that says trade can make everyone better off.

Explanation:

• Devising the financial value of time and activities is critical when it comes to financial management.
• It is preferable to an activity only if it is worth the time that is being allotted to it.
• It the same time can be spent on something that would fetch more returns, continuing to do the same activity is worthless.