Which of the following must be true for voluntary exchange to be mutually beneficial?
A)The parties to the exchange do not cheat
B)The presence of a middleman
C)The use of currency for exchange
D)All individuals are risk averse

Question

Quizplus · Accepted Answer

For voluntary exchange to be mutually beneficial, both parties must believe that they are better off after the exchange. If either party cheats or feels taken advantage of, then the exchange is not mutually beneficial. The presence of a middleman or the use of currency can facilitate the exchange, but they are not necessary for the exchange to be mutually beneficial. Similarly, all individuals do not need to be risk averse for voluntary exchange to be mutually beneficial.

Which of the Following Must Be True for Voluntary Exchange