Which of the Following Represents Key Strengths of the Market

question 64

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) All of the answers above are correct.

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Definitions:

Mentoring

Assigns early-career employees as protégés to more senior ones.

Senior Person

An individual who holds a higher position or rank within an organization, often associated with greater experience or tenure.

Early-Career Employee

An individual who is in the initial stages of their professional journey, often seeking to gain experience and establish themselves in their chosen field.

Executive Socialisation

The process by which new executives learn the cultural and social norms of an organization.