Question

Which transaction fails to produce gains from trade for both buyers and sellers?

1) Barter trade
2) Voluntary trade
3) Involuntary trade
4) Fair trade

Answer 1

Involuntary trade fails to produce gains from trade for both buyers and sellers.

Step-by-step explanation:

The transaction that fails to produce gains from trade for both buyers and sellers is involuntary trade. Involuntary trade occurs when one party is forced or coerced into a transaction against their will, such as in cases of theft or extortion. In such situations, one party may benefit at the expense of the other, leading to an unfair and non-mutually beneficial exchange.