The participants in a market include_____________?
Correct answer: D. all of the above
- A. households
- B. firms
- C. governments
- D. all of the above
Explanation
Households supply resources and demand goods, firms produce goods and hire resources, and governments tax, regulate, and purchase goods and services. All three therefore participate in markets.
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About Microeconomics
Individual consumers, firms and markets are examined through demand and supply, elasticity, consumer choice, production, costs, revenue and the determination of prices and output. The topic also covers market structures such as perfect competition, monopoly and oligopoly, plus market failure, externalities and the distinction between microeconomic decisions and economy-wide outcomes.
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