Which of the following is a main characteristic of exchanges in the market system?
A) Decisions to trade are based on individuals' self interest.
B) Exchanges are highly regulated by the government.
C) Sellers hire economists to determine the market clearing price.
D) Exchanges are part of the legislative imperative.

Question

Quizplus · Accepted Answer

Decisions to trade being based on individuals' self interest is a main characteristic of exchanges in the market system. In a market economy, buyers and sellers make transactions based on their own interests and economic well-being. The government does regulate markets to some extent, but it is not a defining characteristic of the market system. Hiring economists to determine market clearing price and exchanges being part of the legislative imperative are not characteristic of exchanges in the market system.

Which of the Following Is a Main Characteristic of Exchanges