Question

Which one of the following is not an institutional requirement for markets to operate smoothly? Group of answer choices A equal balance of economic power among buyers and sellers Social institutions of trust Money as a medium of exchange Individualist institutions related to private and decision making Infrastructure for the flow of goods and information

Answer 1

Answer:

A equal balance of economic power among buyers and sellers.

Explanation:

For a market to operate smoothly the operational requirement required include:

1. Social Institutions of trust

2. Money as a medium of exchange

3. Individualist institutions related to private and decision making.

When a market is operating smoothly it means that the financial safety net and settlement system works efficiently. Traders can operate seamlessly without delays in payments.

The option that is not a requirement for smooth operation of the market is - equal balance of economic power among buyers and sellers.