Answer:
Transactions in a market occur when both parties—the buyer and the seller—act with their personal gain in mind.
In non-market transactions, the dealings are not conducted at arm's length, and neither party prioritizes personal interest in the services exchanged.
1. Frank assists his elderly aunt during her recovery from knee surgery. (not market)
Reason: Non-market interactions occur without arm's length principles and do not serve the self-interest of either party involved.
2. Jack and Diane purchase tickets to the sold-out Pirates game from a scalper. (not market)
Reason: This transaction serves the interests of both parties, but it is illegal as it exploits the high demand created by the sell-out.
4. The residents of Marble Cliff, Vermont, receive government assistance following a flood that ravaged their homes. (not market)
Reason: Government aid represents market intervention to assist citizens and is not an arm's length transaction.
5. Suzanne buys a secondhand textbook on eBay for significantly less than the price at her university's store.(market)
Reason: eBay facilitates connections between buyers and sellers, and both parties are benefiting from the transaction.
6. Norm paints the fence in his front yard during his day off.(not market)
Reason: Non-market services do not fall under transactional exchanges.
7. Mitchell acquires 50 shares of General Motors stock at the listed price per share (market)
Reason: The current price indicates a market transaction since it reflects mutual interests of both buyer and seller.
