Question

Which economic procedure best encourages voluntary exchange?

government regulation

scarcity

price ceilings

specialization (< My choice)

Answer 1

Answer: specialization (Option D)

From all the above options (i.e. government regulation, scarcity, price ceilings,specialization) specialization is the economic procedure that boosts voluntary exchange the most. The reason is that in specialization, a country is not self-sufficient; it does not produce everything itself. It only produces those good or services, which it yields best in terms of price and efficiency and hence, since it is only producing limited products, it will have to depend on trade to obtain goods and services that other country, are producing better.

Answer 2

The answer is "specialization".

Specialization is a strategy for production whereby an entity centers around the creation of a restricted extent of products to pick up a more noteworthy level of efficiency. Numerous nations, for instance, spend significant time in delivering the products and enterprises that are local to their piece of the world, and they exchange for different goods and services.

Voluntary exchange is the demonstration of purchasers and dealers freely and readily captivating in market transactions. Besides, exchanges are made so that both the purchaser and the dealer are in an ideal situation after the trade than before it happened.