Which of the following best describes a market in economics?

• A. A system where only producers determine the value of goods.
• B. A place where buyers and sellers interact to exchange goods and services.
• C. A physical location where only financial assets are traded.
• D. A government agency that regulates prices and production.

Answer: (B)

Verified step by step guidance

1. Understand the concept of a market in economics: it is a mechanism or environment where buyers and sellers come together to exchange goods and services.
2. Recognize that a market is not limited to a physical location; it can be virtual or conceptual, as long as there is interaction between buyers and sellers.
3. Note that the value of goods is determined by the interaction of both buyers and sellers, not just producers alone.
4. Identify that markets are not exclusively for financial assets; they include all types of goods and services.
5. Understand that a market is distinct from a government agency, which may regulate but does not itself constitute a market.