Which of the Following Is a Key Criticism of the Market

question 70

Multiple Choice

Which of the following is a key criticism of the market economy as a system of allocation?

• A) Goods and services are allocated unequally based on ability to pay.
• B) Producers have strong incentives to innovate because successful innovators are rewarded with higher profit.
• C) Consumers can transmit their preference for product quality and variety by way of their "dollar votes" cast in the marketplace.
• D) Since price is freely set based on supply and demand, there are few shortages or surpluses.

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Definitions:

Creditor

A person or entity to whom money is owed by another (the debtor), typically arising from a transaction of credit or loan.

Judgment

A formal decision or finding made by a court following a legal proceeding.

Human Rights Commission

An independent body established by a government to investigate, report on, and address human rights violations.

Superior Trial Court

A higher-level court that hears both criminal and civil cases, typically with the authority to hear appeals from lower courts.