Which of the following best describes channels of distribution in economics?

• A. The process of setting prices for goods and services in a market
• B. The methods used by firms to advertise their products
• C. The techniques used to measure national income
• D. The pathways through which goods and services move from producers to consumers

Answer: (D)

Verified step by step guidance

1. Understand that 'channels of distribution' refer to the routes or pathways that goods and services take to move from producers to consumers.
2. Recognize that this concept is about the physical and logistical flow of products, including intermediaries like wholesalers, retailers, and agents.
3. Differentiate channels of distribution from other economic concepts such as pricing strategies, advertising methods, or national income measurement, which are unrelated to the movement of goods.
4. Identify that the correct description focuses on how products reach the end consumer, emphasizing the supply chain and distribution network.
5. Conclude that the best description of channels of distribution is 'The pathways through which goods and services move from producers to consumers.'