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.

Question

Quizplus · Accepted Answer

II and III are correct. Markets are not strictly defined by geographic location but by the interaction between buyers and sellers, including the exchange of information and transactions. Prices in markets serve as signals that help coordinate decisions among market participants.

Which of the Following Is True Regarding Markets