CMA Foundation · Fundamentals of Business Economics and Management · Forms of Market
Which of the following is NOT an essential feature of a market in the economic sense?
Ownership of a shop by the seller is not an essential feature of a market. A market needs a commodity, buyers and sellers in contact, and a tendency toward a single price, but sellers can operate online, as hawkers, or through agents without owning any shop.
- AExistence of a commodity or service to be traded
- BPresence of buyers and sellers
- CA tendency toward a single price for the same commodity
- DOwnership of a shop by the sellerCorrect
Explanation
A market requires a commodity, buyers and sellers, contact between them, and a tendency for one price to prevail. Shop ownership is not required, since trade can occur through hawkers or online. The other three are core features.
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