Voluntary exchange
A) is the only way to eliminate scarcity.
B) is a nonprice rationing device.
C) is trading so that the consumer and producers are better off.
D) involves no transactions costs.

Question

Quizplus · Accepted Answer

Voluntary exchange involves trading between a consumer and producer where both parties benefit from the transaction. This can lead to an increase in overall welfare and efficiency in the market. However, it does not eliminate scarcity entirely, nor is it a nonprice rationing device as prices still play a role in determining allocation. There may also be some transaction costs involved in the exchange process.

Voluntary Exchange