Question

True or False. In a market economy, a marketplace is always a physical location where economic transactions take place.

Answer 1

In a market economy, a marketplace can refer to both physical and virtual locations where economic transactions take place.

Step-by-step explanation:

In a market economy, a marketplace is not always a physical location where economic transactions take place. A market can refer to any place or system where buyers and sellers come together to exchange goods or services.

While physical marketplaces like The New York Stock Exchange are examples of markets, there are also online platforms and virtual marketplaces where economic transactions occur. These virtual marketplaces, such as e-commerce websites and online auction platforms, have become more prevalent in modern market economies.