In General, the Market System Is the Most Efficient Allocation

question 92

Multiple Choice

In general, the market system is the most efficient allocation mechanism because

• A) government oversight ensures market efficiency.
• B) no monopolies are allowed to be created.
• C) everyone has an equal part in determining the market outcome.
• D) in pursuing their self-interest, people create efficiency.
• E) of all of these.

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Definitions:

Authority

The legitimate power given to an individual or a body to make decisions and enforce obedience.

Power

The capacity or ability to direct or influence the behavior of others or the course of events.

Operative

Relating to or involved in the functioning of operations or activities within an organization or system.

Will

The mental faculty by which one deliberately chooses or decides upon a course of action; determination or drive.