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 from each other.
III. Markets coordinate decisions through prices.
A) I only
B) II and III
C) I and III
D) I, II and III

Question

Quizplus · Accepted Answer

Option I is incorrect as economists define a market as a place where buyers and sellers come together to exchange goods or services. Option II is correct as a market facilitates exchange by enabling buyers and sellers to meet, get information about each other, and engage in transactions. Option III is also correct as markets coordinate decisions through prices. Prices serve as signals to allocate resources, and they also incentivize buyers and sellers to make decisions that maximize their own well-being.

Which of the Following Is TRUE Regarding Markets