Voluntary Exchange and Opportunity Cost

When two willing people agree to exchange or trade one good or service for something else, it is called

• specialization

• opportunity cost

• voluntary exchange

Who benefits from a voluntary exchange?

• only one person

• no one

• both people

_______________ is when you don't have enought of the thing you want

• trade

• barter

• scarcity

• specialization

Making one kind of good or providing one kind of service is called __________________

• silliness

• specialization

• interdependence

Bobby agrees to trade his Nerf blaster for Jack's Transformer. This is an example of ______________.

• voluntary exchange

• specialization

• opportunity cost

Opportunity cost is giving up the next best option.

• true

• false

A person who starts his or her own business is an ______________.

• consumer

• entreprenuer

• trader

Emily can go to her friend's house or the movies with her family. She decides to go to the movies. What is her opportunity cost?

• movies

• friend's house

Gary takes a piece of candy from Tarah but gives her a quarter. This is an example of voluntary exchange.

• True

• False

Both parties must agree for there to be a voluntary exchange.

• true

• false