Which of the Following Is a Main Characteristic of Exchanges

question 132

Multiple Choice

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.

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Definitions:

Independent Goods

Products or services whose demand is not directly related to the demand for other goods; their consumption or purchase does not affect the consumption or purchase of other products.

Quantity Supplied

The amount of a good that producers are willing to sell at a given price over a specified period.

Quantity Demanded

The amount of a good or service consumers are willing and able to purchase at a given price.

Price

The cost at which a product or service is offered for sale in the marketplace.