Which of the Following Statements About Free-Market Economies Is False

question 43

Multiple Choice

Which of the following statements about free-market economies is false?

• A)An efficiently functioning market economy will correct temporary shortages and surpluses.
• B)Markets tend to be impersonal and to decentralize economic power.
• C)The government has a role to play in correcting market failures.
• D)In a free-market economy there is no role for government intervention.
• E)The existence of profits and losses provides signals to other economic agents.

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Definitions:

Premises

Statements or propositions from which conclusions are logically derived in arguments.

Conclusion

Conclusion refers to the end or finish of an event, process, or text, often summarizing the main points or deducing a final decision.

Conjunctions

Words that connect clauses, sentences, or words in the same sentence to coordinate thoughts and ideas.

Connective

A term or element used in logic and language to link propositions, sentences, or words in a coherent way to construct complex statements.