The Principle of Voluntary Exchange in a Market Economy

Instructions:

Choose an answer and hit 'next'. You will receive your score and answers at the end.

question 1 of 3

Which of the following statements is false?

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1. At ____, both producers and consumers have something the other wants, and each is motivated to engage in an exchange.

2. One of the key principles of economics is the ____.

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About This Quiz & Worksheet

A market economy involves various types of exchange. This worksheet and the practice questions in this quiz will ask you about important terminology related to these exchanges between consumers and producers.

Quiz & Worksheet Goals

With this quiz, test yourself on:

  • A key principle of economics
  • Details about the process of voluntary exchange
  • What it is called when producers and consumers each have something the other wants

Skills Practiced

  • Reading comprehension - show that you read and understand the economics lesson on voluntary exchange
  • Defining key concepts - choose the correct term given a definition about the interactions between producers and consumers
  • Information recall - remember info from the lesson about Adam Smith's economic theory and the characteristics of voluntary exchange

Additional Learning

If you want to know more about this economic idea, review the lesson called The Principle of Voluntary Exchange in a Market Economy. In this lesson, you'll read about:

  • What it means to have a market economy
  • The role of self-interest in economic decisions
  • Government interference in a market economy
  • Notable economist Adam Smith and his book
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