Which type of market involves transactions of goods directly from producer to consumer?

The correct answer is indeed the distribution channel. A distribution channel refers to the pathway through which goods and services travel from the producer to the consumer. In a direct transaction scenario, the distribution channel is characterized by the absence of intermediaries such as wholesalers or retailers, meaning that goods are sold straight from the producer to the end consumer. This allows for greater control over pricing, customer interaction, and often leads to a reduction in costs for the consumer.

In contrast, manufacturing pertains to the actual creation of goods and does not explicitly define how those goods reach consumers. Construction relates specifically to building structures and is not relevant to the broader concept of market transactions. Services involve an intangible offering, which means while they can also utilize distribution channels, the context of the question leans towards tangible goods, making 'distribution channel' the most fitting choice.