Voluntary Exchange Increases Economic Efficiency

question 147

Multiple Choice

Voluntary exchange increases economic efficiency

• A)because neither the buyer nor the seller would agree to a trade unless they both benefit.
• B)because voluntary exchange only takes place with government permission.
• C)because it is free and consequently does not cost anything.
• D)because it allows wealthy individuals to act altruistically and give to the poor.

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Definitions:

Annual Financial Advantage

The financial gain or benefit calculated on a yearly basis, considering all income and savings against expenses and costs.

Outside Supplier

An external entity that provides goods or services to a company, not part of the company's internal operations.

Financial Advantage

The benefit gained in financial terms, often as a result of strategic decisions, investments, or operational efficiencies.

Outside Supplier

A third-party company that provides products or services to another company under a contractual agreement.