Asked by Zachary Whetstone on Jun 30, 2024
Verified
The market system
A) produces considerable inefficiency in the use of scarce resources.
B) effectively harnesses the incentives of workers and entrepreneurs.
C) is not consistent with freedom of choice in the long run.
D) has slowly lost ground to emerging command systems.
Market System
An economic system in which decisions regarding investment, production, and distribution are based on supply and demand, and prices of goods and services are determined in free markets.
Inefficiency
A condition where resources are not used in the most economically beneficial way, leading to wasted resources or less-than-optimal outcomes.
- Understand the basic principles of the market system and its advantages such as efficiency and economic freedom.
Verified Answer
SR
Sofia RamirezJul 06, 2024
Final Answer :
B
Explanation :
The market system effectively harnesses the incentives of workers and entrepreneurs by aligning personal incentives with economic productivity, encouraging innovation, and efficient resource allocation.
Learning Objectives
- Understand the basic principles of the market system and its advantages such as efficiency and economic freedom.