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 on the market.
D) Markets need to be always controlled by government.

Question

Quizplus · Accepted Answer

Markets by definition bring buyers and sellers together, whether it's a physical location (like a farmers market) or a virtual one (like an online marketplace). Option A is false, as markets can experience inefficiencies such as market power, information asymmetry, and externalities. Option C is false, as the possibility of profits and losses serves as a significant disciplinary force that keeps market participants in check. Option D is not universally agreed upon and depends on various factors, such as the degree of market failure and the effectiveness of government intervention.

Which Statement About Markets Is TRUE