Voluntary trade is a smart choice because the value of what you give up is less than the value of what you get.

Question

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Voluntary trade is based on the principle of comparative advantage, which means that individuals or countries should specialize in producing goods or services that they can produce more efficiently than others, and trade with others for goods or services that others can produce more efficiently. This leads to a mutual benefit for both parties involved, as they receive goods or services that are of higher value than what they gave up. Therefore, voluntary trade is a smart choice as it enables individuals or countries to utilize their resources efficiently and maximize their gains.

Voluntary Trade Is a Smart Choice Because the Value of What