Which statement is correct?
A)The operation of a market system eventually results in an equal distribution of income.
B)Producers are "kings" in a market economy because they determine what is produced.
C)The market system is efficient at allocation of resources, but not consumer goods to their most valued uses.
D)Freedom of choice and enterprise are essential elements of the market system.

Question

Quizplus · Accepted Answer

Freedom of choice and enterprise are defining characteristics of a market economy. These principles allow individuals to make their own economic decisions and pursue their own self-interest, ultimately leading to a more efficient allocation of resources and greater overall economic prosperity. A) is incorrect because the market system does not guarantee equal distribution of income, as it allows individuals to earn income based on their own productivity and competitiveness. B) is incorrect because producers do not have complete control over what is produced - they must respond to consumer demand in order to be successful. C) is incorrect because the market system is actually quite efficient at allocating consumer goods to their most valued uses, as prices reflect the relative scarcity and demand for different goods and services.

Which Statement Is Correct