Which of the following constitutes a non-market interaction?
A) Jim Borrows money from a bank to purchase a plow
B) Shuman buys rice for his family
C) Jane works for Rob at his farm and earns a wage
D) Jim and Shuman cooperate to build a road together

Question

Quizplus · Accepted Answer

A non-market interaction refers to exchange or interactions that do not involve the exchange of money or price signals. Option D, where Jim and Shuman cooperate to build a road together, involves a non-market interaction because it doesn't involve any monetary transaction between the two parties. Options A, B and C involve a market interaction because in each of these cases, there is a transaction between the parties involving the exchange of money or price signals. Jim borrows money from the bank in exchange for interest, Shuman buys rice for his family in exchange for a price, and Jane works for Rob in exchange for a wage.

Which of the Following Constitutes a Non-Market Interaction