An important element of the market process is that people trade voluntarily and all parties expect to benefit. ( )
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If there is a way to change a situation so that at least some people gain while no one in the economy loses, the situation is economically efficient. ( )
The three sources of income for the household are wages, rent, and subsidies from the government. ( )
The production possibilities frontier demonstrates the basic economic principle that economies are always efficient. ( )
Trade based on each country’s comparative advantage is economically efficient only if each country also has the absolute advantage in producing their good. ( )