Scenario 4-1
In a given year, country A exported $12 million worth of goods to country B and $6 million worth of goods to country C; country B exported $4 million worth of goods to country A and $7 million worth of goods to country C; and country C exported $5 million worth of goods to country A and $2 million worth of goods to country B.
-Which of the following is true?
A)Economists assume that there are no private property rights in a free market.
B)A free market is also known as a fettered market.
C)A voluntary transaction means that all parties to the transaction must expect to benefit.
D)People always receive goods and services at a discounted price in a free market.
E)An economic growth is represented by an inward shift of the production possibility curve.

Question

Scenario 4-1
In a given year, country A exported $12 million worth of goods to country B and $6 million worth of goods to country C; country B exported $4 million worth of goods to country A and $7 million worth of goods to country C; and country C exported $5 million worth of goods to country A and $2 million worth of goods to country B.
-Which of the following is true?​
A)​Economists assume that there are no private property rights in a free market.
B)​A free market is also known as a fettered market.
C)​A voluntary transaction means that all parties to the transaction must expect to benefit.
D)​People always receive goods and services at a discounted price in a free market.
E)​An economic growth is represented by an inward shift of the production possibility curve.

Quizplus · Accepted Answer

A voluntary transaction implies that both parties expect to benefit from the exchange. This is evident in the given scenario, where each country is engaging in mutually beneficial trade with the others. The other options are not relevant or accurate in this context.

Scenario 4-1 In a Given Year, Country a Exported $12 Million Worth