Well-functioning markets allow:
A)mutually beneficial trades to take place.
B)consumers to gain at the expense of producers.
C)producers to reap greater benefits,since they have greater power in the market.
D)property rights to be unnecessary components of effective distribution.

Question

Quizplus · Accepted Answer

Well-functioning markets allow mutual beneficial trades to take place, meaning both consumers and producers are able to gain from the exchange. This promotes efficiency and optimal allocation of resources in the economy. B, C, and D are incorrect because they promote a one-sided gain for either the consumers or the producers, and ignore the importance of property rights in maintaining a functioning market.

Well-Functioning Markets Allow