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Download Voluntary Exchange - Worth County Schools
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Trade, Exchange and Interdependence Voluntary Exchange Each party is willing to trade Free-trade Taxes Both of goods and services are involuntary exchange the buyer and the seller (producer and consumer) must be better off after the exchange Adam Smith “Wealth of Nations” People act in their own self interest Producers naturally make what people (consumers) want most Competition among sellers (producers) is motivated by profit. Cheaper Better quality Adam Smith “Wealth of Nations” People act in their own self interest Producers naturally make what people (consumers) want most Competition among sellers (producers) is motivated by profit. Cheaper Better quality Farmers: - Peanuts - Cotton - Corn - Soybeans - Melons - Tobacco Economies Market Prices Economy are set by supply and demand Command Economy Prices/supply are set by the government
