Which of the Following Statements About Markets Is Most Accurate

question 87

Multiple Choice

Which of the following statements about markets is most accurate?

• A)Markets are usually a good way to organize economic activity.
• B)Markets are usually inferior to central planning as a way to organize economic activity.
• C)Markets fail and are therefore not an acceptable way to organize economic activity.
• D)Markets are a good way to organize economic activity in developed nations,but not in less developed nations.

---

Definitions:

Regressive Tax

A tax system where the tax rate decreases as the taxable amount increases, placing a higher relative burden on low-income earners compared to high-income earners.

Social Security Benefits

Social Security Benefits are payments made to eligible individuals, including retirees, disabled persons, and survivors, funded by social security taxes.

Transfer Payment

Money distributed by the government to individuals without any requirement for those individuals to provide goods or services in return.

Excise Taxes

Taxes imposed on specific goods, services, or transactions, typically aimed at discouraging their consumption or raising revenue for specific purposes.