If two people exchange an apple, they each still have just one apple, but if they exchange ideas, they now each have two ideas. This is an illustration of
A) the importance of natural resources.
B) the principle of specialization of labour.
C) the difference between information and all the other factors of production.
D) the importance of profit in market economies.
E) the importance of government regulation.

Question

Quizplus · Accepted Answer

This is an illustration of the unique nature of information as a factor of production. Unlike physical goods, exchanging ideas or information can result in both parties having more ideas or knowledge than they did before, creating a benefit for both. This concept is central to modern economies based on information and innovation. The other answer choices do not accurately reflect the illustration provided.

If Two People Exchange an Apple, They Each Still Have