The Major Virtues of the Market System Include All of the Following

question 56

Multiple Choice

The major virtues of the market system include all of the following, except

• A) it promotes an efficient allocation of resources.
• B) it leads to equality in the distribution of income.
• C) it provides incentives for greater production and higher incomes.
• D) it emphasizes the freedom to pursue self-interest.

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Definitions:

Input

Resources such as labor, materials, and capital used in the production of goods and services.

Planned Output

The quantity of goods or services that a company intends to produce in a specific period.

Production Function

A mathematical relationship expressing the output generated by a firm from different quantities of inputs.

Capital

Economic resources that are used to produce goods and services, including buildings, machinery, tools, and equipment.