Voluntary exchange occurs when both parties engage in a transaction willingly and without coercion. In such situations, both parties believe they are benefiting from the exchange, otherwise, they would not engage in it. Therefore, it is generally considered that voluntary exchange is always beneficial to both parties involved in the transaction.

Solved

Voluntary Exchange

Question 256

Multiple Choice

Voluntary exchange

A) is usually beneficial to one party, but not the other.
B) is always beneficial to both parties.
C) is occasionally beneficial to both parties.
D) occurs only between nations, not between individuals.

Correct Answer: