If Jones trades a used car to Smith for $5,000, nothing new is created. Thus, there is

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“If Jones trades a used car to Smith for $5,000, nothing new is created. Thus, there is no way the transaction can improve the welfare of people.” Is this statement true? Why or why not?

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Microeconomics Private And Public Choice

ISBN: 9781305506893

16th Edition

Authors: James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

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Question Posted: Oct 24, 2024 07:03 AM

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If Jones trades a used car to Smith for $5,000, nothing new is created. Thus, there is

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Microeconomics Private And Public Choice

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