By engaging in trade and acting in their own self interest, World War II POWs were following the economic principle of
A) comparative advantage.
B) division of labor.
C) international trade.
D) voluntary exchange.

Question

Quizplus · Accepted Answer

The economic principle of voluntary exchange refers to the act of individuals or firms trading goods or services with each other because they believe it will benefit them. In the case of World War II POWs, they engaged in trade with each other despite constraints and limitations, because it allowed them to obtain goods and services they needed. This demonstrates the concept of voluntary exchange, as they were acting in their own self-interest, making mutually beneficial trades with each other.

By Engaging in Trade and Acting in Their Own Self