The activities buyers and sellers perform to facilitate mutually satisfying exchanges is known as:

• A. Trade
• B. Market exchange
• C. Economic coordination
• D. Market transactions

Answer: (B)

Verified step by step guidance

1. Step 1: Understand the key terms in the question. The question asks about the activities buyers and sellers perform to facilitate mutually satisfying exchanges.
2. Step 2: Define each option to clarify their meanings: 'Trade' generally refers to the act of buying and selling goods or services; 'Market exchange' refers to the process where buyers and sellers interact to exchange goods or services, often involving negotiation and agreement; 'Economic coordination' involves organizing economic activities to achieve efficient outcomes; 'Market transactions' are individual instances of buying or selling within a market.
3. Step 3: Analyze which term best captures the ongoing activities between buyers and sellers that enable mutually satisfying exchanges, rather than just the act or a single event.
4. Step 4: Recognize that 'Market exchange' emphasizes the process and interaction between buyers and sellers facilitating these exchanges, making it the most precise term for the described activities.
5. Step 5: Conclude that the correct term for the activities buyers and sellers perform to facilitate mutually satisfying exchanges is 'Market exchange'.