People acting in their own self interest is the basis of the
A) principle of supply and demand.
B) principle of voluntary exchange.
C) real-nominal principle.
D) principle of scarcity.

Question

Quizplus · Accepted Answer

The principle of voluntary exchange is based on individuals acting in their own self interest. This principle states that people will freely exchange goods or services if they perceive it will benefit them in some way. In other words, individuals will only engage in voluntary exchange if they see a net gain for themselves. Therefore, the principle of voluntary exchange is based on people acting in their own self interest.

People Acting in Their Own Self Interest Is the Basis