Total "laissez-faire" is impossible because________________?
Correct answer: D. all of the above
- A. the market does not provide for satisfying public needs
- B. the market is not equitable favoring those with more resources
- C. the market makes no provision for protecting smaller participants
- D. all of the above
Explanation
A completely laissez-faire market may underprovide public goods, produce unequal outcomes, and fail to protect weaker participants from stronger ones. These three limitations support the inclusive answer, all of the above.
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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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