Evaluating a Ban on Voluntary Exchange

Two individuals, Alex and Ben, engage in a voluntary exchange. Alex sells a used item he values at $50 to Ben for$75. Ben was willing to pay up to $100 for the item. According to the standard economic argument, why is prohibiting such a transaction generally considered inefficient?

Critique of the Voluntary Exchange Principle

Analyzing a Controversial Voluntary Exchange

True or False: According to the standard economic argument for permitting voluntary exchange, a transaction between two consenting individuals should be allowed as long as both individuals believe they will benefit, even if the transaction has a minor negative impact on an uninvolved third party.

Match each term related to the economic argument for voluntary exchange with its correct description.

According to the standard economic perspective, a voluntary transaction between two parties that results in at least one person being made better off while no one is made worse off is known as a ______. The principle suggests that prohibiting such an exchange introduces economic inefficiency.

Applying the Principle of Voluntary Exchange

Which of the following scenarios provides the strongest illustration of the economic inefficiency created by prohibiting a voluntary exchange that would otherwise represent a clear, mutual benefit for the participants without harming others?

Evaluating a Price Control Policy

Global Prohibition of Human Organ Sales

Controversy Surrounding Commercial Surrogacy