If Each Person Pursues Their Own Self-Interest Through a Market-Institution

question 100

True/False

If each person pursues their own self-interest through a market-institution, the resulting chaos would cause the market to collapse.

---

Definitions:

Literate

The ability to read and write at a level sufficient for effective communication and consumption of information.

Social Overhead Capital

Basic infrastructure projects such as roads, power generation, and irrigation systems.

Developing Country

A nation with a lower level of material wealth, industrialization, and human development index compared to developed countries.

Free-Rider Problem

A problem intrinsic to public goods: Because people can enjoy the benefits of public goods whether or not they pay for them, they are usually unwilling to pay for them.