In competitive markets, consumers and sellers create a ___ where goods and services are exchanged.

• A. command economy
• B. market
• C. oligopoly
• D. monopoly

Answer: (B)

Verified step by step guidance

1. Understand the context of the problem: it asks about the environment where consumers and sellers interact to exchange goods and services in competitive markets.
2. Recall the definition of a market in microeconomics: a market is any arrangement that allows buyers and sellers to exchange goods and services.
3. Recognize that a command economy is a system where the government controls production and distribution, which is different from competitive markets.
4. Identify that oligopoly and monopoly refer to market structures with limited sellers, not the general environment of exchange in competitive markets.
5. Conclude that the correct term to fill in the blank is 'market' because it best describes the place or system where consumers and sellers create exchanges.