The "formal defence" of free markets includes the argument that competitive markets
A) lead to allocative efficiency.
B) provide automatic coordination of the actions of decentralized decision makers.
C) provide a stimulus to innovation and economic growth because of the pursuit of profits.
D) permit a decentralization of economic power.
E) lead to political freedom.
Correct Answer:
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Q9: In a free-market economy,
A)temporary shortages and surpluses
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Q13: The essential coordinating mechanism of a free-market
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Q15: One part of the "informal defence" of
Q16: The "informal defence" of free markets includes
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