What can we say is true as a result of people engaging in voluntary trade?
A)One person gains and the other loses.
B)One person gains while there is a neutral effect on the other person.
C)Both people gain.
D)Neither person gains.

Question

Quizplus · Accepted Answer

Voluntary trade occurs when both parties believe they will benefit from the transaction. Therefore, it is possible for both people to gain from engaging in the trade. A and D are incorrect, as one or both people always gain from voluntary trade, and B is incorrect as it states there may be a neutral effect, which is unlikely in a mutually beneficial exchange.

What Can We Say Is True as a Result of People