Some of the advantages of a market economy include ?
Correct answer: D. all of the above
- A. all participants get some satisfaction
- B. scarce resources are put into goods that are in demand
- C. economic output is distributed to those who can pay the price
- D. all of the above
Explanation
A market economy directs scarce resources toward goods consumers demand and distributes output mainly according to ability and willingness to pay. Since each listed statement describes a market-economy feature, all of the above applies.
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Individual consumers, firms and markets are examined through demand and supply, elasticity, consumer choice, production, costs, revenue and the determination of prices and output. The topic also covers market structures such as perfect competition, monopoly and oligopoly, plus market failure, externalities and the distinction between microeconomic decisions and economy-wide outcomes.
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