If the Market System Is So Efficient, Why Is It

question 18

Multiple Choice

If the market system is so efficient, why is it not universally used?

• A) The rich get richer, and the poor get poorer.
• B) Goods and services cannot freely move from one part of the world to another.
• C) People are evading taxes, so not all transactions go through the market.
• D) The market does not work very well in all situations.
• E) Some governments want to control every aspect on their country's economy.

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Definitions:

Survey Research

A research method that collects data from a predefined group of respondents to gain information and insights on various topics of interest.

Escalation Commitment

The phenomenon where people continue to invest time, money, or effort into a failing project due to the cumulative prior investment, despite new evidence suggesting that the cost of continuing the project outweighs the expected benefit.

Betamax Systems

An early video cassette recording format that was eventually overshadowed by VHS.

Three-Tiered Model

A framework that categorizes something into three levels or layers, often used to describe levels of intervention, service, or analysis.