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Which of the Following Properly Contrasts Market and Government Incentives

Question 165

Multiple Choice

Which of the following properly contrasts market and government incentives?


A) The profit motive encourages efficiency in markets, whereas the ability of people to vote encourages efficiency in the government to the same or greater degree.
B) Markets are free-wheeling, allowing for unethical conduct.Government rules do not allow unethical conduct.
C) In markets, the profit motive encourages efficiency.In government, the philanthropic motive encourages efficiency.
D) In markets, the profit motive encourages firms to produce what consumers want.In government, there is a tendency to seek to satisfy central authority.
E) In markets, there is a profit motive.In government, there is no motivation.

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