Which of the Following Is a Key Criticism of the Market

question 70

Multiple Choice

Which of the following is a key criticism of the market economy as a system of allocation?

• A) Goods and services are allocated unequally based on ability to pay.
• B) Producers have strong incentives to innovate because successful innovators are rewarded with higher profit.
• C) Consumers can transmit their preference for product quality and variety by way of their "dollar votes" cast in the marketplace.
• D) Since price is freely set based on supply and demand, there are few shortages or surpluses.

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Definitions:

Private Speech

Vocal communication that individuals direct to themselves, often used as a tool for thought processing and problem-solving, particularly in children.

Lev Vygotsky

A Soviet psychologist known for his work on cognitive development, particularly the sociocultural theory that children learn through interactions with their surrounding culture.

Cognitive Development

A theory of how thought processes, including understanding, perception, and problem-solving, develop from infancy through adulthood.

Jean Piaget

A Swiss psychologist known for his pioneering work in child development and his theory of cognitive development stages.