Question

1. \voluntary exchange creates ______.\

○ wealth
○ potential conflict
○ scarcity
○ redistribution

Explanation:

Voluntary exchange occurs when both parties trade goods/services because they value what they receive more than what they give up. This mutual benefit increases the overall value (wealth) for both participants, as each leaves the transaction better off. Scarcity is a foundational economic condition, not a result of exchange. Potential conflict is not created by voluntary, mutually beneficial trades, and redistribution involves transferring existing resources, not creating new value.

Answer:

○ wealth