Which of the following statements about markets is correct? I. A market helps resources move to their highest-valued uses by means of prices changes.
II) A market represents the exchanges of both buyers and sellers.
A) I only
B) II only
C) Both I and II
D) Neither I nor II

Question

Quizplus · Accepted Answer

Both statements are correct. Statement I explains how market prices help to allocate resources efficiently and Statement II highlights the fact that a market involves the interaction of both buyers and sellers in the exchange of goods or services.

Which of the Following Statements About Markets Is Correct? I