The Market System Is Said to Be Efficient Because It

question 114

Multiple Choice

The market system is said to be efficient because it

• A) takes fewer resources to work than any other system.
• B) requires more labor than any other system.
• C) determines the price.
• D) allocates resources to who wants them.
• E) creates fewer goods and services than other systems.

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Definitions:

Patent

A legal right granted to an inventor, providing exclusive commercial rights to an invention for a certain period.

C Corporations

A type of corporate structure where the business is taxed separately from its owners, offering limited liability protection to its shareholders.

Tax Advantages

Financial benefits derived from tax laws, which reduce the tax liability of an individual or business.

Limited-Liability

This is a legal status that prevents a company's shareholders from being personally liable for the company's debts or liabilities beyond their investment in the company.