Which of the Following Represents Key Strengths of the Market

question 49

Multiple Choice

Which of the following represents key strengths of the market economy as a system of allocation?

• A)Goods and services are allocated based on willingness and ability to pay,rather than based on need.
• B)Producers have strong incentives to innovate because successful innovators are rewarded with higher profit.
• C)Since price is freely set based on supply and demand,shortages and surpluses are minimized.
• D)Both b.and c.above are correct.

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Definitions:

Operational Definition

A clear, detailed description of a process, concept, or variable in terms of the procedures or operations required to measure it.

Depression

A mental health disorder characterized by persistently depressed mood or loss of interest in activities, affecting daily functioning.

Conscientiousness

A personality trait characterized by being thorough, careful, or vigilant; entails a strong sense of duty and being responsible.

Determinism

The philosophical concept that every event or state of affairs, including every human decision and action, is the consequence of preceding events in accordance with the natural laws.