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kirill115 [55]
3 years ago
5

Explain why voluntary transactions improve social welfare. What happens if transactions are forced? Can consumers get more or le

ss happiness (holding their income/wealth constant) if they are forced intotransactions they don’t want versus being able to choose what transactions they participate
Business
1 answer:
tatiyna3 years ago
8 0

Answer:

Voluntary Transaction can be understood as: Voluntary transactions enhances social welfare by enabling suppliers and consumers to willingly participate in market transactions together.

When the transactions are forced, market transactions will reduce/decrease as a result of suppliers and consumers not being able to participate jointly willingly again.

This ultimately favors the consumers as they would gain more happiness if they would be be allowed to select what transactions they participate in.

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Answer:

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Explanation:

If the US dollar appreciates, it will reduce American exports and increase imports. Since exports fall, the aggregate demand curve will shift to the left. A leftward shift in the AD curve will result in lower total output and a lower price level. Since the price level decreases, exports decrease and imports increase, the real GDP will decrease.

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Cindy invests $3000 in a bond trust that pays 8% interest compounded semiannually. Her friend, Jimmy, invests $3000 in a certifi
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