Question

Under market organization, individuals can communicate their preferences to other decision makers directly, through communication, but not indirectly, through their choice of whom to transact with.
1. True
2. False

Answer 1

Answer:

2. False

Explanation:

Market organization refers to the ways goods and services are bought and sold in the market.

Under market organization, individuals can communicate their buying decisions and their preferences and tastes directly to their peers and known ones which eventually affects the latter's decision making. This is a direct way of communication.

Similarly, another form of communication would be indirect wherein an individual conveys his/her choice of with whom they want to transact with rather than their preferences. Here the communication is indirect and this is a realistic possibility.

Hence the given statement is false.