Which of the Following Must Be True for Voluntary Exchange

question 16

Multiple Choice

Which of the following must be true for voluntary exchange to be mutually beneficial?

• A)The parties to the exchange do not cheat
• B)The presence of a middleman
• C)The use of currency for exchange
• D)All individuals are risk averse

---

Definitions:

Exculpatory Clause

A contract term that seeks to release one party from liability for harm or damage that may occur to another.

Residential Property

Real estate that is used for dwelling purposes, including single-family homes, apartments, condominiums, and townhouses.

Public Policy

A system of laws, regulatory measures, courses of action, and funding priorities set by governmental entities or its representatives.

Illegal Profits

Earnings obtained through activities that are unlawful or against regulatory guidelines.