Why Is the Market's Allocation of Products Preferable to That

question 73

Multiple Choice

Why is the market's allocation of products preferable to that of either the producers or of the government?

• A)Because it ensures that even the poor will be able to afford to buy everything.
• B)Because it ensures that only people who really need certain products will be able to afford them.
• C)Because it ensures that both demand and supply factors are taken into consideration.
• D)Because it will mean that scarce resources are available at low prices.
• E)Because it ensures that the income distribution of the population is ignored.

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Definitions:

Individualistic Cultures

Societies that emphasize personal achievements and rights, prioritizing individual goals over group goals.

Collectivistic Cultures

Societies that prioritize the group over the individual, emphasizing community, cooperation, and interdependence.

Trait Theory

A theory in psychology focused on the identification and measurement of stable characteristics that individuals exhibit, known as traits.

Selfish Impulses

Inclinations or urges to act in a way that prioritizes one's own interests over the welfare of others.