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by Joe Calhoun

Two segments: (1) Beth is at The Strip, a blend of artisanal craft shops, fine food stores, a variety of restaurants and common consumer goods stores. She’s observing the “win-win” nature of the transactions. Through voluntary trade, both parties are made better off. (2) Why did both parties say “you're welcome” at the end of the transaction? Both parties said “you’re welcome,” because both parties were winners in the exchange. Trade is mutually advantageous. In a voluntary exchange, both parties agree to trade. If both don't believe they'll benefit from the trade, the transaction won't occur. This means that for the trade to occur, the benefits have to outweigh the costs for both parties (the producer and the consumer).


Two segments: (1) While at the mall, Beth sees how voluntary trade creates value. (2) Professor Macy explains the key points in Module 02 about gains from trade.

from Module 02 Slice of Life, Module 02 Professor explanation; combination (2014)
Creator: Common Sense Education International & the Florida State University Stavros Center for Economic Education
Posted by Joe Calhoun