Dee is an accomplished actress and a homeowner who pays a landscaper to maintain her lawn rather than do it herself. Dee has determined that she can earn more in the hour it would take her to work on her lawn than she must pay her landscaper. This scenario is an example of which principle of economics?
A)Trade can make everyone better off.
B)Markets are usually a good way to organize economic activity.
C)Governments can sometimes improve market outcomes.
D)Prices rise when the government prints too much money.

Question

Quizplus · Accepted Answer

This scenario exemplifies the principle that trade can make everyone better off. Dee benefits by focusing on her higher-paying work, and the landscaper benefits from the income earned from the job, demonstrating how specialization and trade can lead to improved outcomes for both parties.

Dee Is an Accomplished Actress and a Homeowner Who Pays