Which of the following is TRUE regarding markets?
I. Economists define a market as a geographic location where trade occurs.
II. A market enables buyers and sellers to get information about each other and to buy and sell fro each other.
III. Markets coordinate decisions through prices.

Question

Quizplus · Accepted Answer

Economists define a market as not necessarily being a geographic location, but rather a system of buyers and sellers who trade a particular good or service. Choice II is true because markets allow for information sharing between buyers and sellers, and choice III is true because the price of a good or service in a market represents the coordination of decisions between buyers and sellers.

Which of the Following Is TRUE Regarding Markets