Question

12 when people freely and willingly engage in trade of goods and services in the marketplace, what has occurred? a voluntary exchange b law of supply c productivity d circular flow

Explanation:

• Voluntary exchange is defined as the act of buyers and sellers freely and willingly trading goods and services in a marketplace.
• The law of supply refers to the relationship between price and quantity supplied, not willing trade.
• Productivity measures output per unit of input, unrelated to the described trade action.
• Circular flow describes the movement of money, goods, and services between households and firms, not the specific act of willing trade.

Answer:

A. Voluntary exchange