Question

d traditional economy.
e.03. 5. while shopping at the mall, madeline will only buy a pair of jeans if the price is acceptable to her. this transaction represents the economic concept of
a socialism
b voluntary exchange
c factors of production
d production possibilities

Explanation:

To solve this, we analyze each option:

• Option A: Socialism is an economic system focused on public ownership, not related to a single transaction of buying jeans. Eliminate A.
• Option B: Voluntary exchange occurs when both the buyer (Madeline) and seller agree to the transaction (price acceptable to Madeline, implying mutual agreement). This matches the scenario.
• Option C: Factors of production are resources (land, labor, capital, entrepreneurship) used to produce goods, not a transaction concept. Eliminate C.
• Option D: Production possibilities relate to trade - offs in production, not a purchase transaction. Eliminate D.

Answer:

B. voluntary exchange