Which of the following is the best example of a market in economics?

• A. A government agency regulating food safety
• B. A classroom where students learn about supply and demand
• C. A library lending books to the public
• D. A local farmers' market where buyers and sellers exchange produce

Answer: (D)

Verified step by step guidance

1. Understand the definition of a market in economics: a market is any arrangement or mechanism where buyers and sellers interact to exchange goods or services, typically involving voluntary transactions and price determination.
2. Analyze each option to see if it fits this definition: a government agency regulating food safety does not involve direct buying and selling, so it is not a market.
3. A classroom where students learn about supply and demand is an educational setting, not a place where actual exchange of goods or services occurs, so it is not a market.
4. A library lending books to the public provides a service, but usually without a direct exchange involving prices or voluntary transactions between buyers and sellers, so it is not a market.
5. A local farmers' market involves buyers and sellers coming together to exchange produce, with prices determined by supply and demand, making it the best example of a market in economics.