Which statement about markets is TRUE?
A) They always operate efficiently.
B) They bring buyers and sellers together.
C) Profits are never an effective discipline in the market.
D) Markets need to always be controlled by the government.

Question

Quizplus · Accepted Answer

Markets bring buyers and sellers together, allowing them to engage in voluntary transactions based on mutually agreed-upon terms. While markets can operate efficiently, they can also suffer from failures such as market power, information asymmetry, and externalities. Profits can serve as a discipline in the market, incentivizing firms to operate efficiently and meet consumer demand. While some government regulation may be needed to address market failures, excessive control can limit competition and innovation.

Which Statement About Markets Is TRUE