How specialization and exchange can create more output

Reference no: EM131823232

Question: In this chapter, we've often emphasized how specialization and exchange can create more output. But sometimes the output from voluntary exchange is difficult to measure and doesn't show up in GDP statistics. In each of the following cases, explain how the two parties involved might be able to make themselves both better off just by making a voluntary exchange.

a. Alan received two copies of Gears of War as birthday gifts. Burton received two copies of Halo as birthday gifts.

b. Jeb has a free subscription to Field and Stream but isn't interested in hunting. George has a free subscription to the Miami Herald but isn't all that interested in Florida news.

c. Pat has a lot of love to give, but it is worthless unless received by another. Terry is in the same sad situation.

Reference no: EM131823232

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