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A person volunteers for a company charity and receives a T-shirt for the time spent. Why does this count as an exchange?
AMoney changed hands between the two parties involved
BThe charity earned a profit from the work performed
CEach party gave the other something it valued
DThe volunteer was legally obliged to give the time
Answer & Solution
Correct answer: C. Each party gave the other something it valued
1. An exchange needs two parties who each give the other something of value.
2. The volunteer gives time and receives a T-shirt, so value moves in both directions.
3. Exchanges do not have to involve money, and nonmonetary exchanges like this one still qualify.
4. No money changed hands here, so the option resting on money is wrong.
5. Profit and legal obligation play no part in the definition of an exchange.
_Source: OpenStax Introduction to Business (CC BY 4.0), Ch 11 "Creating Products and Pricing Strategies to Meet Customers' Needs", section 11.1 The Marketing Concept_
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