The "Formal Defence" of Free Markets Includes the Argument That

question 111

Multiple Choice

The "formal defence" of free markets includes the argument that competitive markets

• A)lead to allocative efficiency.
• B)provide automatic coordination of the actions of decentralized decision makers.
• C)provide a stimulus to innovation and economic growth because of the pursuit of profits.
• D)permit a decentralization of economic power.
• E)lead to political freedom.

---

Definitions:

Predictive Validity

The extent to which a score on a scale or test predicts future performance on a related task.

Criterion Validity

Criterion validity evaluates how well a measure predicts an outcome or correlates with a gold-standard assessment.

Culinary Skills

The ability to cook and prepare food effectively and creatively.

Validity

Refers to the extent to which a concept, conclusion, or measurement is well-founded and likely corresponds accurately to the real world.