Which of the following statements about exchange is false?
A) The expectation of gain motivates people to engage in trade.
B) If a party to a potential exchange does not believe that it will lead to personal gain, he or she can chose not to engage in the trade.
C) Voluntary exchange is generally mutually beneficial to the trading partners.
D) If one trading partner gains, the other must lose.

Question

Quizplus · Accepted Answer

Voluntary exchange is based on the principle that both parties expect to benefit from the trade, making it mutually beneficial rather than a zero-sum game where one gains and the other loses.

Which of the Following Statements About Exchange Is False