Which of the Following Statements About Free- Market Economies Is

question 69

Multiple Choice

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

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

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Definitions:

Stewardship Worldview

a perspective that emphasizes responsible management and care of the environment and natural resources.

Anthropocentric

A perspective that views humans as the most important entities in the universe, often leading to the evaluation of environmental issues primarily in terms of human interests.

Consequentialism

An ethical theory that judges whether something is right based on its consequences.

Planetary Management

An approach to governance that emphasizes the active management of Earth's resources and systems for sustainable human development while considering the needs of future generations.