Which of the following is not true?
A)Voluntary exchange is expected to be advantageous to both parties to the exchange.
B)What one trader gains from a trade, the other must lose.
C)If one party to a potential voluntary trade decides it does not advance his interests, he can veto the potential trade.
D)The expectation of gain motivates people to engage in trade.

Question

Which of the following is not true?
A)​Voluntary exchange is expected to be advantageous to both parties to the exchange.
B)​What one trader gains from a trade, the other must lose.
C)​If one party to a potential voluntary trade decides it does not advance his interests, he can veto the potential trade.
D)​The expectation of gain motivates people to engage in trade.

Quizplus · Accepted Answer

This statement is not true. Voluntary exchange does not necessarily lead to one trader's gain being the other's loss. Both parties can benefit and gain from the exchange.

Which of the Following Is Not True