The Basic Economic Argument for the Market System Is That

question 106

Multiple Choice

The basic economic argument for the market system is that it promotes:

• A) an efficient allocation of resources.
• B) equality in the distribution of income.
• C) personal freedom.
• D) the use of money.

---

Definitions:

Arbitragers

Individuals or entities that attempt to profit from differences in prices across markets by simultaneously buying and selling similar or identical assets.

Pakistani Rupees

The official currency of Pakistan, used as a medium of financial transaction within the country.

Real Exchange Rate

The rate at which the currency of one country can be exchanged for the currency of another country, adjusted for inflation.

Nominal Exchange Rate

The price at which one currency can be exchanged for another currency, without adjustment for inflation.