Which of the Following Represents Key Strengths of the Market

question 49

Multiple Choice

Which of the following represents key strengths of the market economy as a system of allocation?

• A)Goods and services are allocated based on willingness and ability to pay,rather than based on need.
• B)Producers have strong incentives to innovate because successful innovators are rewarded with higher profit.
• C)Since price is freely set based on supply and demand,shortages and surpluses are minimized.
• D)Both b.and c.above are correct.

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Definitions:

Inherited Traits

Characteristics or qualities passed down genetically from parents to offspring.

Nurture

The care and attention given to something or someone to support their growth, development, or well-being.

MBTI

Myers-Briggs Type Indicator, a psychometric tool designed to measure psychological preferences in how people perceive the world and make decisions, based on Carl Jung's theory of personality types.

Promote Diversity

Efforts and practices aimed at encouraging representation and participation of different groups of people, based on race, ethnicity, gender, sexual orientation, age, and other characteristics, within an organization or community.