Voluntary exchange
A)will eliminate scarcity.
B)is a nonprice rationing device.
C)is trading so that the consumer and producers are better off.
D)never involves transactions costs.

Question

Quizplus · Accepted Answer

Voluntary exchange refers to the act of trading between a buyer and a seller, where both parties benefit from the transaction. This results in both consumer surplus and producer surplus, making both the buyer and the seller better off than they were before. However, voluntary exchange does not eliminate scarcity and may involve transaction costs, such as time and effort in finding a buyer or seller or negotiating the terms of the trade. Therefore, option C is the best choice as it accurately describes the benefits of voluntary exchange.

Voluntary Exchange