Which of the Following Statements Is True About a Market

question 35

Multiple Choice

Which of the following statements is true about a market economy?

• A)With a large enough computer, central planners could guide production more efficiently than markets.
• B)Market participants act as if guided by an invisible hand to produce outcomes that maximise social welfare.
• C)The strength of a market system is that it tends to distribute resources evenly across consumers.
• D)Taxes help prices communicate costs and benefits to producers and consumers.

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Definitions:

State Decisions

Judgments or determinations made by government entities or authorities at the state level.

Antipsychotic Drugs

Drugs that help correct grossly confused or distorted thinking.

Mental Disorders

Health conditions characterized by significant changes in thinking, emotion, or behavior, associated with distress and impaired functioning.

Hospitalized

The act of admitting an individual to a hospital for treatment, observation, or other medical care.