Market activity differs from government activity because:

A) markets generally force prices to below-cost levels.
B) governments never charge for the services they provide.
C) markets do not use voluntary exchange mechanisms.
D) markets provide a direct link between benefits and costs.
E) governments have strong incentives to keep costs under strict control.

Market activity provides a direct link between benefits and costs because prices are determined by the supply and demand for goods and services. Consumers are willing to pay a price that reflects the benefits they receive, and producers are willing to supply goods and services at a price that covers their costs. In contrast, government activity often involves providing public goods and services that cannot be priced or directly linked to individual benefits and costs.