Which of the following best represents the broadest definition of a market in economics?

• A. A store where consumers purchase products
• B. A government-regulated platform for trading financial assets
• C. A physical place where goods are bought and sold
• D. Any arrangement that allows buyers and sellers to exchange goods and services

Answer: (D)

Verified step by step guidance

1. Understand that in economics, a market is not limited to a physical location or a specific type of transaction. Instead, it is broadly defined as any arrangement that facilitates the exchange of goods and services between buyers and sellers.
2. Recognize that options like 'a store where consumers purchase products' or 'a physical place where goods are bought and sold' are narrower definitions because they focus on specific locations or settings.
3. Note that 'a government-regulated platform for trading financial assets' is a specific type of market but does not encompass all markets in economics.
4. Therefore, the broadest definition includes all possible arrangements—whether physical, virtual, formal, or informal—that enable buyers and sellers to interact and trade.
5. Summarize that the best answer is the one that captures this broad concept: 'Any arrangement that allows buyers and sellers to exchange goods and services.'