In a Market Economy, Decisions Are Guided by Individual Self-Interest

question 58

Multiple Choice

In a market economy, decisions are guided by individual self-interest. What impact does this have?

• A) There is still the ability to achieve desirable economic well-being for society as a whole.
• B) There is a strong need for government intervention in the market.
• C) There is less efficiency in market economies than in command economies.
• D) There is more need for a strong legal system to control individual greed.

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Definitions:

BFOQ Defense

A legal justification used by employers to hire based on specific characteristics, like sex or age, that are normally prohibited by discrimination laws, when it's deemed reasonably necessary to the operation of the business or job.

Fair Labor Standards Act

United States federal law that establishes minimum wage, overtime pay eligibility, recordkeeping, and child labor standards affecting full-time and part-time workers in the private sector and in federal, state, and local governments.

Minimum Wages

The lowest legal hourly rate of pay that employers can compensate workers, as mandated by federal or state law.

Defined Benefit Plans

A type of pension plan where an employer promises a specified pension payment upon retirement, based on an employee's earnings history, tenure of service, and age.