A Weakness of the Market System of Resource Allocation Is

question 32

Multiple Choice

A weakness of the market system of resource allocation is that

• A) such economies tend to be stagnant
• B) most participants in such an economy have low standards of living
• C) there are no limits on an individual's freedom of action
• D) it does not address the problem of initial inequities in endowments
• E) its participants are free to act according to their desires

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Definitions:

Itemized Deductions

Deductions from taxable income that are enumerated and individually taken, as opposed to taking a standard deduction. These can include expenses for healthcare, taxes paid, interest expenses, and charitable contributions.

State Income Taxes

Taxes levied by individual states on the income of residents and sometimes non-residents earning income within the state.

Schedule A

A form used by U.S. taxpayers to itemize deductions on their federal income tax return.

Uniforms

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