When two people engage in voluntary trade,
A) one will necessarily lose.
B) both will necessarily lose.
C) both will expect to be made better off.
D) each will expect to lose.

Question

Quizplus · Accepted Answer

Both parties engage in voluntary trade because they expect to be better off as a result. If one party expected to lose, then they would not engage in the trade. Therefore, both parties must have a mutual benefit in mind when making the trade.

When Two People Engage in Voluntary Trade