Question

attempts average / 2

1. the interaction of individual choices

crystal registered a startup graphic design company. about a month after opening, crystal strikes a deal to revamp a law firms brand image in exchange for a tax lawyers help filing for the upcoming year.
which of the following principles of economic interaction best describes this scenario?
○ trade can make everyone better off.
○ markets allocate goods effectively.
○ when markets do not achieve efficiency, government intervention can improve overall welfare.
○ all costs are opportunity costs.

Explanation:

This scenario involves a voluntary trade where Crystal's graphic design company provides services to a law firm, and in return receives tax filing help. Both parties gain value from the exchange: Crystal gets professional tax assistance, and the law firm gets brand revamp services. This aligns with the principle that mutual voluntary trade benefits all involved parties.

Answer:

Trade can make everyone better off.