In order for any market to function properly, market actors must embed the market in a network structure that produces the necessary ______ among market participants for them to engage in economic exchange.
A) faith
B) beliefs
C) trust
D) stimulus

Question

Quizplus · Accepted Answer

Trust is essential for any market to function properly as it enables market participants to engage in economic exchange with confidence that they will fulfill their obligations and not engage in opportunistic behavior that would harm other parties. Faith and beliefs may contribute to market participation, but they do not necessarily support the necessary level of trust among participants. Stimulus is not directly related to network structure or participant behavior in markets.

In Order for Any Market to Function Properly, Market Actors