Asked by Sterline Pierre on Jul 09, 2024
Verified
Two major virtues of the market system are that it:
A) allocates resources efficiently and allows economic freedom.
B) results in an equitable personal distribution of income and always maintains full employment.
C) results in price level stability and a fair personal distribution of income.
D) eliminates discrimination and minimizes environmental pollution.
Market System
An economic system where the prices of goods and services are determined in a free price system set by supply and demand.
Allocates Resources
The process of distributing available resources among various competing needs and desires to achieve optimal efficiency and effectiveness.
Economic Freedom
The extent of liberty and choice individuals have in conducting their economic activities, including starting and running businesses, with minimal government intervention.
- Determine and clarify the key components and merits of the market mechanism, including the idea of the invisible hand.
Verified Answer
MC
maddy cofieldJul 10, 2024
Final Answer :
A
Explanation :
The market system allocates resources efficiently by allowing supply and demand to determine prices and quantities of goods and services. This results in the optimal allocation of resources to meet consumer demand. Additionally, the market system allows for economic freedom, allowing individuals to make their own choices regarding their labor, consumption, and investment. This promotes creativity and innovation, leading to economic growth and development.
Learning Objectives
- Determine and clarify the key components and merits of the market mechanism, including the idea of the invisible hand.