ECONOMICS
TRADE EXCHANGE AND INTERDEPENDENCE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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paying taxes
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paying for a taxi
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none of these options
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trading for sugar beets
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Detailed explanation-1: -Involuntary transfers occur whenever one person or group gains at the direct expense of another person or group. While the most common examples are theft, offensive military incursions, corruption and fraud, involuntary transfers also occur in the minds of some observers, when governments tax its citizens.
Detailed explanation-2: -INVOLUNTARY EXCHANGE: The process of unwillingly trading one valuable commodity (good, service, or resource) for another, usually prompted by the coercive powers of government.
Detailed explanation-3: -Voluntary transaction . Means a donation, exchange, market sale, or other type of agreement entered into without compulsion on the part of the agency.
Detailed explanation-4: -Involuntary exchanges are forced (ex. military drafts), while voluntary exchanges are mutually, but not necessarily equally, beneficial because if the participants do not think the offer is to their benefit then they will refuse it (ex. sweatshops).